In order to prevent illicit activities throughout the Supply Chain and making secure interactions, transparency of information and improving data sharing in the E-commerce industry, it is necessary to use a Legal Entity Identifier (LEI). In this regard, it is required to set up a product identifier system and collect products and services info and create a common language for business’ parties about their transactions. This is done using the GS1 integrated standards and with the participation of the main beneficiaries. So better management of the E-commerce processes, Transparency, and economic saving will be possible.
The Legal Entity Identifier (LEI) as the basis of this plan, is a 20-character, alpha-numeric code which is assigned to legal entities and financial market participants by the representatives of the Global Legal Entity Identifier Foundation (GLEIF) in return to a fee. Financial market participants include Municipal corporate entities, Government departments, Funds, Charities …
As a Global LOU, GS1 Global Office provides LEI issuance services and supports the MOs to quickly establish local LEI services. MOs who decide to participate in this plan can sign a contract with the GS1 as a registered agent and pay the registration fee and then start their activity as an agent in their country. All these LOUs should locally inform and support the LEI issuance process and by receiving related documents from the entities and validating them assist them in requesting this code.
Providing LEI services, along with GS1 identification keys and standard solutions, can be an accumulative model and an effective tool for MOs to attract and register financial entities and their subsets. Informing active companies in consumer goods, transportation, Healthcare and etc. that are not aware of their need for LEI services will be useful in the implementation of this plan.
Lack of global standard info in electronic commerce industry causes the problem for companies. Because prompt and accurate data gathering for making the related decision is difficult. Standardized data provides a powerful tool for newly founded companies and trading Companies to improve their risk management. LEI is standardized as the first part of this new international financial platform. The development of this standard will lead to the entry of technology in the financial industry, as well as the creation of useful innovations and reduction of input errors in this industry.
LEI is necessary for the transparent identification of entities. Customers should ask for an LEI code and be aware of the legal status
GS1 is a GLEIF (Global Legal Entity Identifier Foundation) accredited Local Operating Unit and able to issue Legal Entity Identifiers (LEIs) across the globe. GS1’s LEI services provide organizations with the obtaining and transferring LEI. With more than 40 years of experience in the identification of unique products and entities, GS1 and its global network of Member Organizations operating in 112 countries, are uniquely qualified to offer complete LEI services, with expertise in data validation and knowledge of local language, laws, and regulations.