According to the requirements of ISO 17442, from November 1, 2017, the LEI (Legal Entity Identifier) code was introduced for organizations working with foreign partners. The use of the assigned number is mandatory for financial transactions. The validity of the permit is 1 year, after which the extension is carried out.
Since January 3, 2018, the LEI instrument has been adopted as mandatory for international financial transactions, including the conduct of marginal foreign exchange transactions. The code has following functions:
• Legal entity identification during transactions.
• Ability to verify the status of the partner organization when conducting transactions, transparency of information.
• Avoiding mistakes in transactions on the world market.
• Obtaining information on the amount of funds, founders, the organization form, the head of the organization by other participants of commercial relations.
• Forming requests for issuers of securities.
If there is no code, companies will not be allowed to enter into international transactions. Since January, it will be impossible to conduct banking operations.
LEI is issued according to the self-request of a legal entity. Issuance of identification codes is carried out by a specialized organization - Global Legal Entity Identifier System. The decision on the possibility of providing a unique digital number is taken within a period of one to several months. In this connection, it is not recommended to delay the consideration of the issue. It is better to delegate the issue documentation to specialized companies that interact with authorized numbers assigning structures. To do this, you will need to report the exact activities that the organization plans to engage in, information about founders and management, the amount and documents for the authorized capital.
The purpose of creating the Legal Entity Identifier is to organize a unified international database of legal entities based on the ISO 17442 standard. The data will be used to control financial transactions by the International Supervisory Authority, as well as when reporting on activities. The decision to introduce a code system was part of the G20 task for the risk assessment at the global level. All assigned numbers are stored in the global GLEIF database, combined in the LEI Code Guide.