GLEIF approves BOCOM Fintech as validation agent
14 November 2024 China
Image: 昊_周/stock.adobe.com
The Global Legal Entity Identifier Foundation (GLEIF) has approved the Bank of Communications (BOCOM) Fintech as the latest validation agent.
BOCOM Fintech’s new status in the Global LEI System represents a significant milestone for LEI adoption in China and the Asia Pacific region, according to GLEIF.
The collaboration aims to foster international cooperation in financial regulation and strengthen global economic risk identification.
“This step represents the strong participation and support to foster trust and transparency in the global economy,” comments GLEIF CEO Alexandre Kech.
“By exploring new LEI and vLEI applications, BOCOM Fintech will contribute to building a new global ecosystem for organisational digital identity, bringing tangible benefits to local businesses, enhancing regional integration, and promoting economic development."
As a wholly-owned subsidiary of the BOCOM, identified by the Financial Stability Board (FSB) as a global systemically important bank (G-SIB), BOCOM Fintech is dedicated to advancing China’s digital transformation.
The approval follows support from the Beijing National Institute of Financial Standardization (NIFS).
The firm will leverage the LEI to streamline cross-border identification, simplify know-your-customer (KYC) processes and document requirements for offshore businesses, expedite identity verification, and reduce compliance risks.
BOCOM Fintech is also actively exploring new applications of the LEI and its digital counterpart, the verifiable LEI (vLEI).
These include 'one single system' cross-border trade financing solutions and cross-border e-commerce compliance solutions, which aim to promote paperless trade while ensuring transparency in cross-border transactions.
BOCOM Fintech says it will continue to advocate for the LEI as an 'international passport' for legal entities, providing benefits for local businesses expanding globally and foreign enterprises entering the Chinese market.
Supporting this progress, Shanghai local authorities recently introduced a comprehensive package of 50 measures to bolster the local application of the LEI.
These measures encourage companies in the Lin-gang Special Area to use the LEI for cross-border verification and key trade documents, such as electronic bills of lading, electronic warehouse receipts, and electronic invoices.
Tang Yi, president of BOCOM Fintech, says: "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.
“We are firmly committed to exploring innovative applications of the LEI in anti-money laundering (AML), maritime trade, and cross-border e-commerce, therefore promoting digital finance and economic development."
Zhou Xichong, executive director and general manager of NIFS, adds: “The Global LEI System provides a robust foundation for advancing global digital finance by standardising data formats.
“As a new validation agent, BOCOM Fintech will play a pivotal role in promoting the adoption of LEIs in China. 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.”
BOCOM Fintech’s new status in the Global LEI System represents a significant milestone for LEI adoption in China and the Asia Pacific region, according to GLEIF.
The collaboration aims to foster international cooperation in financial regulation and strengthen global economic risk identification.
“This step represents the strong participation and support to foster trust and transparency in the global economy,” comments GLEIF CEO Alexandre Kech.
“By exploring new LEI and vLEI applications, BOCOM Fintech will contribute to building a new global ecosystem for organisational digital identity, bringing tangible benefits to local businesses, enhancing regional integration, and promoting economic development."
As a wholly-owned subsidiary of the BOCOM, identified by the Financial Stability Board (FSB) as a global systemically important bank (G-SIB), BOCOM Fintech is dedicated to advancing China’s digital transformation.
The approval follows support from the Beijing National Institute of Financial Standardization (NIFS).
The firm will leverage the LEI to streamline cross-border identification, simplify know-your-customer (KYC) processes and document requirements for offshore businesses, expedite identity verification, and reduce compliance risks.
BOCOM Fintech is also actively exploring new applications of the LEI and its digital counterpart, the verifiable LEI (vLEI).
These include 'one single system' cross-border trade financing solutions and cross-border e-commerce compliance solutions, which aim to promote paperless trade while ensuring transparency in cross-border transactions.
BOCOM Fintech says it will continue to advocate for the LEI as an 'international passport' for legal entities, providing benefits for local businesses expanding globally and foreign enterprises entering the Chinese market.
Supporting this progress, Shanghai local authorities recently introduced a comprehensive package of 50 measures to bolster the local application of the LEI.
These measures encourage companies in the Lin-gang Special Area to use the LEI for cross-border verification and key trade documents, such as electronic bills of lading, electronic warehouse receipts, and electronic invoices.
Tang Yi, president of BOCOM Fintech, says: "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.
“We are firmly committed to exploring innovative applications of the LEI in anti-money laundering (AML), maritime trade, and cross-border e-commerce, therefore promoting digital finance and economic development."
Zhou Xichong, executive director and general manager of NIFS, adds: “The Global LEI System provides a robust foundation for advancing global digital finance by standardising data formats.
“As a new validation agent, BOCOM Fintech will play a pivotal role in promoting the adoption of LEIs in China. 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.”
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