CBA now a validation agent in the global legal entity identifier system

This comes ahead of Australia updating its OTC derivative transaction reporting rules.

The Commonwealth Bank of Australia (CBA) is now a validation agent in the Global Legal Entity Identifier (LEI) System.

In a press release, the Global Legal Entity Identifier Foundation (GLEIF) named CBA as its first validation agent based in Australia.

GLEIF expects a sharp increase in LEI adoption by SMEs and non-financial organisations across the region, especially with the upcoming updates to over-the-counter (OTC) derivative transaction reporting rules by the Australia Securities & Investments Commission (ASIC). 

The regulation, which comes into force in October, mandates the LEI as the only permitted entity identifier for counterparty identification,phasing out the use of the AVID code and Business Identifier Code (BIC). 

In its role as a Validation Agent, CBA is also expected to champion broader industry efforts to harmonize the use of identifiers to promote greater transparency and contribute to the fight against financial crime across the global economy. 

GLEIF’s Validation Agent Framework enables financial institutions and other supervised 
organizations involved in legal entity identity verification and validation to obtain and 
maintain LEIs for their clients in cooperation with accredited LEI Issuers.

With CBA becoming a validation agent, the number of agents globally is now 15, with a network spanning Africa, Australia, China, Europe, India, the Middle East, and North America.