Using legal entity indentifier (LEI) on blockchain for reducing money laundering risks in financial institutions

The increasing use of blockchain technology nowadays can play a key role for using of decentralized network as a standard database for the unified and secured registry through which financial institutions can conduct relevant customer due diligence measures and business transactions by verifying organizations’ Legal Entity Identifier (LEI) codes, self-sovereign identifiers managed by the Global Legal Entity Identifier Foundation (GLEIF). With proper implementation, this solution can be applied on blockchain networks, offering the additional advantage of quality control and detailed business analysis. Thus, by giving financial institutions the benefit of interacting with legal entities that have proven their reputation and, therefore, by reducing the money laundering risk in financial institutions, the blockchain technologies now could reach global standardization and acceptance by financial institutions worldwide.