Policy Conformity Flag Initiative to Increase Transparency in Global Financial Markets
The global economy is facing unprecedented identity-related fraud, leading to significant financial losses and undermining trust between organizations, particularly in cross-border transactions. Financial crises have highlighted the importance of unique identification and understanding the connections between legal entities to effectively track and manage financial risks.
What is the Policy Conformity Flag
The Policy Conformity Flag is a simple, clear tool for global data users to determine whether individual LEI records meet certain Regulatory Oversight Committee (ROC) policies. An LEI labeled as ‘conforming’ indicates the following criteria have been met (along with the related benefits):
1. The LEI registration is up-to-date - the LEI record renewal (and thus, the review of data related to the legal entity) has been completed within the specified timeframe.
2. The declaration of corporate structure data is complete - the legal entity has provided data regarding direct and ultimate parents (or has provided one of the specified reasons why such data may not be provided).
The Benefits of the Policy Conformity Flag
1. Fighting financial crime
2. Monitoring market risk
3. Enhancing Operational Processes
Legal entities are encouraged to ensure that their LEI record is "conforming," i.e., compliant with the policies established by the ROC within the Global LEI System.
It is important to highlight that an LEI record marked as "conforming" represents a simple and effective solution available to legal entities to ensure basic compliance with many international regulations.
More information on the Conformity Flag can be found on the GLEIF website, click here.
If you would like to update the parent relationship of the LEI, please refer to this link for the guide.
If you have any questions with regards to your LEI's policy conformity flag, you may contact us via email to LEI_Support@gs1.org.sg or call us @ +65 88005498 for any other queries on LEI.