Legal Entity Identifier (LEI) is a unique 20-character identification code issued to legal entities engaged in financial transactions. It helps in identifying parties involved in financial markets globally.

LEI enhances transparency in financial transactions and reduces financial fraud and systemic risk. It is mandatory for certain transactions such as large-value payments and derivative trades.

Advantages:

• Improves financial transparency
• Reduces fraud risks
• Mandatory for regulated transactions
• Enables global entity identification