Enhancing party identification in payments messaging with the Legal Entity Identifier

Enhancing party identification in payments messaging with the Legal Entity Identifier

ByRobin Doyle and Paul Janssens

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Like other areas of banking, the world of payments suffers from a high cost of regulatory compliance and outdated methods to ensure accurate and reliable data for legal entity identification. The use of the Legal Entity Identifier (LEI) as a key element in legal entity identity management within the payments life cycle can help solve these issues. Including LEIs in the payments life cycle provides verified, authoritative information about the exact legal entity involved in payments transactions to the parties involved in the process. The Payments Market Practice Group considers the migration to the ISO 20022 payments messaging standard, and use of the LEI within that migration, a key opportunity to rethink how and what reference data are sourced and used for legal entity identification, and to make real enhancements to such identification and messaging processes for the payments community.

 

Click here to read the full Payment Journal article.    Please note that this article was first published in Journal of Payments Strategy & Systems by Henry Stewart Publications.  Further information on this journal is available at: https://www.henrystewartpublications.com/jpss