The G20 roadmap to enhance cross-border payments has launched several initiatives to reduce frictions in data processes by promoting the use of common message formats, data exchange protocols, conversion and mapping approaches from legacy formats and standardised data, among others. To address data handling issues and improve compliance processes, it also aims to examine the scope for a global unique identifier that links to account information in payment transactions (Building Block 16 of the roadmap, BB16). This could facilitate straight-through processing, reducing costs and increasing speed in transactions, and could assist market participants in meeting Know-Your-Customer (KYC) requirements.

This report explores options to improve the adoption of the LEI (Action 2 of BB16, see table below). The report takes account of the 2019 FSB Thematic Review on Implementation of the Legal Entity Identifier and will also inform future FSB follow-up work on the recommendations set out in the peer review. Based on the input gathered from national authorities, the LEI Regulatory Oversight Committee (ROC), the Global Legal Identifier Foundation (GLEIF), market participants and other stakeholders, the report sets out recommendations and options for improving the adoption of the LEI in cross-border payments to assist in achieving the goals of the G20 roadmap. The recommendations are addressed to FSB member jurisdictions, the FSB itself, ROC and GLEIF, relevant standard-setting bodies (e,g. the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO), the Basel Committee on Banking Supervision (BCBS), and the Financial Action Task Force (FATF)) and international organisations (IMF, World Bank).

Achieving these goals will depend on promoting uptake of the LEI among non-financial corporates as well as financial institutions.

The FSB will review progress in implementing these recommendations and publish a progress report by end-2024, together with a review of progress in implementing the recommendations of the LEI peer review.

Establishing unique identifiers with proxy registries: Actions and milestones

Action 1

Review the scope, technical and operational requirements of existing and proposed global digital identifiers for both legal entities and natural persons and analyse the need for a decentralised proxy registry.

October 2020 - October 2022

Action 2

Determine the next steps to promote the use of a (global) digital unique identifier framework and decentralised proxy registry in jurisdictions

This action includes:

FSB in close coordination with GLEIF, the LEI ROC and national authorities to explore the options to improve adoption of the LEI.

June 2021 – June 2023





June 2021-June 2022

Action 3

If necessary: Implementation and progress monitoring.

October 2022 – June 2023