With more than 15 financial institutions presently active worldwide, BNP Paribas is the most recent to receive approval as a Validation Agent.

The purpose of the program and framework is to allow banks and other regulated institutions to assist clients in obtaining LEIs by utilizing their know-your-customer (KYC) and client onboarding processes. Validation Agents can enhance internal data management, expedite client lifecycle management procedures, and enhance the corporate client onboarding experience by accomplishing this.

BNP Paribas is the first globally systemically important bank (G-SIB) with a European Union headquarters to be included to the Global LEI System and participate in the Validation Agent initiative.
 

"The Validation Agent role was designed to offer a multitude of benefits to any financial institution that engages corporate clients," said Stephan Wolf, CEO of GLEIF. Better client onboarding and lifecycle management procedures will help BNP Paribas and its clients.

Beyond the benefits of the position, BNP Paribas has a distinct chance to change the way LEIs are applied, both in response to compliance requirements and more generally to promote increased openness amongst organizations globally in order to aid in the battle against financial crime. The Global LEI System has advanced significantly with the addition of BNP Paribas to the Validation Agent program, and we are happy that BNP Paribas has recognized the possibilities this role presents.


"Encouraging increased transparency and trust amongst multinational corporations"

Corporate and institutional banking (CIB) clients of BNP Paribas will receive an LEI proactively, guaranteeing the long-term effectiveness of new procedures through the provision of high data correctness. When CIB clients are brought on board, BNP Paribas gets their LEIs. During the KYC recertification process, it will make sure the LEIs are complete.

This simplifies the entity identification procedures, allowing the bank to expedite onboarding and provide a more convenient client experience.
 

Goulven Charlès, the chief data officer of BNP Paribas Corporate & Institutional Banking, added, "We are committed to fostering greater trust and transparency amongst international businesses, which is why we are assuming the role of Validation Agent. We are implementing the LEI as part of our ongoing data efforts, adding value for our clients and the BNP Paribas CIB as a whole.

By giving its clients an LEI, BNP Paribas is encouraging a broader worldwide adoption as well. The bank and its clients can benefit from the standardized global corporate identification system in a variety of use cases where counterparty verification is necessary by expanding the ways in which they employ LEIs.


This covers international supply chain connections, digital identity applications, cross-border payments, KYC and anti-money laundering (AML), external provider matching, and environmental, social, and governance (ESG) reporting.

Strong international support for the use of the LEI in ISO 20022 payment messages to support important use cases involving cross-border payments and combat financial crime globally has led to support for wider use. This comprises the Swift Payment Market Practice Group (PMPG), the Wolfsberg Group, and the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements.