China, 21st November 2023 | Oceanpayment has established a strategic partnership with the Global Legal Entity Identifier Foundation (GLEIF) to facilitate cross-border trade. On the 3rd of November, GLEIF’s CEO, Stephan Wolf, and Oceanpayment’s Chairman, James Liu, signed a Memorandum of Understanding (MoU) to create the partnership. The signing ceremony was also attended by Oceanpayment’s Vice President, Cindy Xiao, and other representatives from both organizations.
As a result of increasing global economic integration, digital trade and cross-border e-commerce activities have gained particular relevance, generating a growing demand for streamlined and efficient cross-border services. In 2022, the People’s Bank of China (PBC), along with three other governmental departments, issued the “Fourteenth Five-Year Plan for Financial Standardization Development.” This identified the adoption of the Legal Entity Identifier (LEI) in financial monitoring and cross-border digital identification of legal entities, cross-border payments, and other cross-border transaction scenarios as a strategic objective to strengthen international exchanges and cooperation in cross-border payment standards. More recently, the G20 Roadmap for Enhancing Cross-border Payments also pointed out that efforts should be made to explore the application of the LEI within ISO 20022 message standards to achieve faster, cheaper, more transparent, and more inclusive cross-border payments, while maintaining their safety and security. In this context, the Legal Entity Identifier (LEI) is set to become the “international passport” for companies and all kinds of organizations globally.
Noting the strategic objectives outlined by the PBC and the G20, Oceanpayment is actively promoting cooperation with international partners such as GLEIF. In the future, Oceanpayment will help its client base obtain LEIs to facilitate and promote their cross-border transactions. This will provide businesses involved in cross-border business activities with an internationally recognized “identity card,” further enhancing local companies’ convenience, efficiency, and international recognition in the global marketplace while promoting interoperability across different cross-border payment systems.
About the Legal Entity Identifier (LEI):
The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information, enabling precise and unique identification of legal entities participating in financial transactions. Each LEI contains information about an entity’s ownership structure and thus answers the questions of ‘who is who’ and ‘who owns whom.’ Simply put, the publicly available LEI data pool can be regarded as a global directory, greatly enhancing transparency in the global marketplace. As of the end of the third quarter of 2023, the total number of LEIs worldwide exceeded 2.36 million, with over 55,000 issued in the third quarter of 2023, representing a quarterly growth of 2.4%.
James Liu, Chairman of Oceanpayment, stated, “We are pleased to establish a strategic partnership with GLEIF. This cooperation will help us build a more efficient, inclusive, and secure cross-border payment environment. This not only provides strong international identity verification support for businesses participating in cross-border transactions and other business activities, but also integrates the strengths and services of both parties to enhance the convenience of cross-border trade and promote global economic development.”
Stephan Wolf, CEO at GLEIF, commented, “The global industry’s broad consensus supporting the inclusion of LEIs within ISO 20022 payment messages represents the enormous potential of LEIs in cross-border payments. Through this new strategic partnership with Oceanpayment, GLEIF will continue to promote the voluntary adoption of LEIs in the Asia-Pacific region, thereby contributing to streamlining cross-border payments across the region and creating a more inclusive, transparent, and secure global market.”
Implementing the LEI will positively impact the efficiency and security of cross-border trade in a highly digitalized landscape, improve government financial regulatory frameworks, and align national payment systems with international standards. As a global leader in the FinTech industry, Oceanpayment strives to facilitate international trade by leveraging the latest financial technologies in cross-border payments. Oceanpayment’s strategic partnership with GLEIF will contribute to accelerating the digitalization of local businesses and improve their performance in cross-border business.
About the Global Legal Entity Identifier Foundation (GLEIF):
Established by the Financial Stability Board (FSB) in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization created to support the implementation and use of the Legal Entity Identifier (LEI) and its digital counterpart, the verifiable LEI (vLEI). GLEIF is headquartered in Basel, Switzerland.
GLEIF’s mission is to manage a network of global partners to provide trusted services and open, reliable data for unique legal entity identification worldwide. GLEIF makes available the technical infrastructure to provide, via an open data license, online access to the full global LEI database free of charge to users. GLEIF is overseen by the Regulatory Oversight Committee (ROC), which is made up of representatives of public authorities from across the globe.
References:
[1] Hong Kong Economic Journal, September 5, 2023.
[2] Global LEI System Business Report (Q3 2023).
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