Shanghai FTZ-based BOCOM Fintech becomes latest to adopt LEI

The Global Legal Entity Identifier Foundation (GLEIF) has officially approved BOCOM Fintech as the latest Validation Agent in the Global LEI System.

A Shanghai-based subsidiary of the Bank of Communications (BOCOM), the approval follows support from the Beijing National Institute of Financial Standardization (NIFS). By securing Validation Agent status, BOCOM Fintech represents a significant boost for LEI adoption in China and Asia-Pacific.

“By becoming a Validation Agent in the Global LEI System, we are better positioned as a FinTech company and aim to contribute more effectively to China’s economic opening up,” said Tang Yi, president of BOCOM Fintech.

BOCOM Fintech is part of China’s digital transformation and will leverage LEI to streamline cross-border identification and simplify Know Your Customer (KYC) processes. It is also exploring new applications of the LEI and its digital counterpart the verifiable LEI (vLEI).

BOCOM Fintech intends to advocate for the LEI as an international passport for legal entities, according to a statement, from its strategic position in Shanghai’s Lin-gang Special Area (a pilot free trade zone).

Shanghai officials have also recently introduced a package of fifty measures to bolster local application of the LEI. These are designed to encourage companies in the free trade zone to use the LEI for cross-border verification and key trade documents.

Zhou Xichong, executive director and general manager of NIFS, said: “The Global LEI System provides a robust foundation for advancing global digital finance by standardizing data formats.”

“As a new Validation Agent, BOCOM Fintech will play a pivotal role in promoting the adoption of LEIs in China,” he continued. “NIFS will collaborate closely with GLEIF and BOCOM Fintech to explore LEI and vLEI applications in cross-border payments, international trade, and counterparty identification and verification.”

A few weeks ago, the International Organization for Standardization (ISO) published an extension of the standard for embedding Legal Entity Identifiers (LEIs) in verifiable credentials that are digitally signed and tamper-resistant. The new verifiable LEIs (vLEIs) were guided to that point by GLEIF.

Article Topics

digital identity  |  GLEIF  |  identity verification  |  KYC  |  Legal Entity Identifier (LEI)