21 Analytics Open-sources Its LEI Library for TRP
Today we make our LEI library available as open-source. This means every company and individual can use the LEI library free of charge and modify it according to their needs. Legal Entity Identifiers (LEI) are a building block of the Travel Rule Protocol (TRP) and InterVASP Messaging Standard (IVMS), meaning every company (e.g. a VASP or solution provider) that implements TRP/IVMS needs to deal with the LEI standard.
21 Analytics' goal is to establish TRP as the open standard for the Financial Action Task Force’s (FATF’s) Travel Rule. By open-sourcing our implementation of the LEI, we make it even easier to implement TRP and, therefore, foster quicker and broader adoption of TRP.
You can get the source code of our LEI library here: https://gitlab.com/21analytics/lei
Benefits of Open-Source Software
Open-source software provides visibility into the source code, allowing users to understand how the software works and verify its security. This transparency fosters trust and promotes a collaborative approach to software development.
Moreover, users have the freedom to modify and customise open-source software to suit their specific needs. This flexibility enables businesses and individuals to adapt the software to their unique requirements, leading to greater efficiency and productivity. With open-source software, a large user base scrutinises the code for vulnerabilities and bugs as developers can examine the code and learn from it. This increased scrutiny leads to faster identification and resolution of security issues, making open-source software potentially more secure and reliable.
What Is a Legal Entity Identifier (LEI)?
An entity is assigned a unique code known as a Legal Entity Identifier (LEI), which consists of a 20-character alphanumeric combination.
This code enables the global identification of companies by accessing a comprehensive database maintained by the Global Legal Entity Identifier Foundation (GLEIF). By using GLEIF's LEI search, users can retrieve various information, including
the company's name,
address,
affiliation with other companies, and
registration details.
These codes adhere to global standards, ensuring the unique and universal identification of business entities worldwide.
Why Do Companies Have LEI Codes?
During the 1900s, global trade experienced rapid growth, necessitating transparency in transactions, particularly in international trade. However, the absence of a standardised method to identify entities posed significant challenges. Companies could be owned by larger entities, which, in turn, could be owned by other companies, resulting in confusion and uncertainty regarding the parties involved. This lack of clarity sometimes facilitated fraudulent activities and money laundering, precisely the issues targeted by the FATF for prevention.
With the advent of digital finance, the need for entity identification resurfaced. The resolution to this problem emerged at the G20 Summit held in June 2011, where the concept of LEI codes was introduced.
The 21 Analytics team loves open-source software and open, decentralised standards. Follow this blog to hear about the next TRP building block we will open-source soon!
Grab the source code today and contact us if you need help implementing TRP.
