Legal Entity Identifier (LEI)

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters

Banking Policy Department
No.: 46076 / 41
Date: 1439/10/19
Attachments: None

Circular

Respected Sirs,
Peace, mercy of Allah and His blessings be upon you,

Subject: Necessity of obtaining a Legal Entity Identifier (LEI) from accredited Local Operating Units.

Reference is made to the endorsement by the Group of Twenty (G20) -of which the Kingdom is a member- of the Legal Entity Identifier (LEI) system in July 2012, to enable regulatory and supervisory authorities to assess potential risks, maintain financial stability, monitor participants in financial markets, and provide accurate and periodically updated financial information. This system aims to provide mechanisms through which financial sector institutions can identify risks in a systematic and effective manner, and to provide operational regulatory requirements to ensure the stability and efficiency of the financial sector. Global legislative authorities have concluded the importance of providing unique identifiers for each commercial entity worldwide and exchanging them transparently. The Bank hosted, in the first half of this year, committees and working groups for the global LEI system, in addition to holding a workshop to explain the project with representatives of banks, insurance and reinsurance companies, and financing companies.

The Legal Entity Identifier (LEI) system is an internationally accredited standard numbering system (ISO 17442) for legal entities (companies and institutions), whereby each legal entity is defined by a unique 20-character code. Through this identifier, basic information about the establishment appears, such as the official name, headquarters address, legal form of the establishment, and subsidiary relationships with the parent company.

To operate the project, the Global LEI Foundation (GLEIF) has adopted international standards for the LEI system and qualified and accredited Local Operating Units (LOUs) for the project according to approved technical and legal requirements. Most regulatory and supervisory authorities worldwide have recognized the need to adopt the LEI system. Furthermore, there are thirty-two accredited operating units

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Phone: 4633000, Fax: 4662414

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters

Banking Policy Department
No.:
Date:
Attachments:
Corresponding:

...accredited operating units linked to the Global Association of Legal Entity Identifiers, including a Saudi accredited unit affiliated with the Saudi Credit Information Company (SIMAH) named the "Ma'rif" Unit.

Accordingly, it is necessary for banks, insurance and reinsurance companies, and financing companies operating in the Kingdom (and their subsidiaries) to obtain a Legal Entity Identifier from one of the accredited Local Operating Units approved by the International Association for Legal Entity Identifiers, starting from 1/8/2018 (Gregorian), and to provide the Bank with this information. They must also circulate to their affiliated financial groups the importance of registration for international purposes.

Accept my regards,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and commercial banks operating in the Kingdom.
• Insurance and reinsurance companies operating in the Kingdom.
• Financing companies operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Phone: 4633000, Fax: 4662414