LEI CODE is a global identifier, as over a million businesses rely on the ISO standard for their regulation. The overlook on the code shows that 20 characters. These are not just 20 characters but a complete identifier within itself. These 20 digits are divided into four parts, which makes it capable of becoming a global identifier.
Code Pattern: The code pattern of LEI is divided into the following four parts.
1. Characters From 1 To 4
Characters from 1 to 4 are the local operating unit identifier. These characters are used for the identification of the source from which the code is issued. Whenever there is a need for identification of the source, these four characters provide you the information, and these are globally accepted.
2. Character 5 To 6
These characters are called as the reserved digits. They are always zero ( 0 ). Thus the characters 5 and 6 are issued with the number 0.
3. Character 7 To 18
It is the third group of numbers and letters. This is the group that is always unique for every code. This group contains 12 Alphanumeric. Therefore these provide uniqueness to every LEI CODE. This group of numbers can help identify the registered firm or trade-in the global database.
4. Character 19 To 20
The last two characters, the number 19 and 20, help in the verification purposes of the trade.
The format of LEI may seem difficult to understand, but in fact, when it is broken down into simple parts, it shows that it is very simple and every part has its own function and working. This LEI code because of these reasons is highly ranked by international organizations. This code is also backed up by the ISO 17442.
Benefits Of LEI Code
The following are some of the benefits of LEI code.
• It is considered as a global directory for trade registration.
• It ensures transparency in the world business.
• It helps in countering money laundering.
• It is beneficial against the detection of fraud.
• Provided a single identity to a business.
• Help in to keep check and balance of the business finance.
• Eradicates corruption to an extent.
How To Get LEI Code
Getting an LEI code is not a hard nut to crack, but in fact, it is an easy task. There is no such obstacle in the way of getting an LEI code.
To apply for LEI code is a simple and very quick process. LEI code can be obtained for any legal entity. It can be gained for some funds, trust, charities, donations, Association, for limited companies, and for banks. It is available throughout the world.
Final Thoughts On LEI Codes
It was becoming necessary day by day to have a single entity for all businesses to ensure transparency. Therefore in this regard, the establishment of an LEI Code is a major step towards it. The use of a single entity is being praised worldwide.
