Doha, November 11 (QNA) - Qatar Credit Bureau has been accredited by the Global Legal Entity Identifier Foundation (GLEIF) as an accredited local operating unit that issues legal entity identifiers for companies and institutions that conduct financial transactions globally.
Legal Entity Identifier (LEI) promotes the principle of transparency by allowing stakeholders to identify each entity in financial markets, with the aim of improving corporate and institutional risk management, better assessing partial and macro prudential risks, enhancing market integrity and reducing financial fraud. The LEI provides the basic reference information that allows a clear identification of legal entities involved in financial transactions.
The LEI, an international system, provides a special standard numbering for legal entities of companies and institutions. It is a 20-character alphanumeric globally unique legal entity identifier issued under ISO17442. It has the basic information of entities involved in financial transactions such as official name, and headquarters address, the legal form of the company, and the relationships of the subsidiaries with its parent companies.
The system's goal is to enable regulators and supervisors to assess potential risks, maintain the stability and efficiency of the financial sector, monitor dealers in the Qatari market, provide accurate and up-to-date information on these legal entities and enable market participants, who rely on official documents, to make strategic decisions (such as traders, investors and regulators) and to collect and verify depository information quickly and easily.
In remarks, HE Governor of Qatar Central Bank Sheikh Abdullah bin Saud Al-Thani expressed delighted over the accreditation of Qatar Credit Bureau by the GLEIF as a local operating unit, adding that this is a testament to the excellence attained by the Center in term of the quality of its services, as the adoption of the global legal entity identifiers contributes to giving institutions operating in the country a global identity that protects them against any doubt or ambiguity when conducting financial transactions at the international level, thus enhancing market integrity, while containing unfair practices and fraud. It also raises operational efficiency and reduces risk, he added.
HE the Governor stressed that the LEI is linked to the basic reference information that allows a clear and unique identification of legal entities engaged in financial transactions, and that the publication of LEIs also supports the overall quality and accuracy of financial statements.
HE CEO of Qatar Credit Bureau Sheikha Maryam Bint Khalifa Al-Thani pointed out that the bureau's vision is to establish a secured credit system in the country that operates according to international standards and to expand the business scope, and that the bureau's contributions will continue to build an effective and stable local economic system through the provision of comprehensive and accurate credit information based on the latest technology and global knowledge.
Her Excellency added that the adoption of the LEI system supports many financial stability objectives and at the same time provides many advantages for the private sector.
Her Excellency called on all companies and institutions in the State of Qatar to apply and get the legal entity identifier, as all legal entities in the State of Qatar now have access to the identifier through a simple and easy procedure.
HE CEO of Qatar Credit Bureau said that GLEIF membership through GLEIF certification is a global commitment to data quality and customer service, which focuses on further improving the quality, reliability and ease of use of LEI data, to enable market participants to take advantage of the wealth of information available within the LEI community.
Qatar Credit Bureau intends to organize introductory workshops on legal entity identities in the coming period. The bureau currently has 24 members from the banking, finance, telecommunications, automotive and other sectors, and membership of the bureau is available to all financial institutions and information providers in the country.
Qatar Credit Bureau, which operates under Qatar Central Bank, was established with the aim of contributing to building a highly efficient and stable banking system by providing accurate and comprehensive credit information on the basis of advanced global knowledge and technology.
In 2011, the G20 asked the Financial Stability Board (FSB) to make recommendations for a global LEI system and supporting governance structure. This has led to the development of the Global LEI system, which, through the issuance of LEIs, now provides a mechanism for the unique identification of legal entities involved in financial transactions around the world.