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GLEIF clarifies Validation Agent role for banks and FIs

Wednesday 7 October 2020 14:28 CET | News

The Global Legal Entity Identifier Foundation (GLEIF) has introduced a new ‘Validation Agent’ role and explained what it will mean for financial institutions and banks.

It announced that financial institutions (FIs) worldwide can realize a variety of cost, efficiency, and customer experience benefits by assuming a new ‘Validation Agent’ role within the Global LEI System. FIs acting as Validation Agents simplify LEI issuance for their clients, reduce time-to-revenue, and future proof their institutions for digital innovation. The Validation Agent Framework is a new operational model in the Global LEI System. 

By leveraging their know-your-customer (KYC), anti-money laundering (AML), and other regulated ‘business-as-usual’ onboarding processes, Validation Agents can now obtain an LEI for their customers when verifying a client’s identity during initial onboarding or during a standard client refresh update, according to the official press release. 

Until now, legal document and data collection procedures, which are conducted as standard to verify the identity of a client entity within a bank’s onboarding process, have been replicated within the Global LEI System by a Local Operating Unit (LOU), as part of the LEI issuance process. By becoming Validation Agents, FIs can spare their clients from these duplicative processes and deliver a faster and more convenient customer experience. 


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Keywords: GLEIF, Validation Agent, banks, FIs, financial institutions, Global LEI System, LEI issuance, digital innovation, Validation Agent Framework, KYC, AML, onboarding, Local Operating Unit, LOU, know your customer
Categories: Banking & Fintech | Digital Identity, Security & Online Fraud
Countries: World
This article is part of category

Banking & Fintech