Regulation Spotlight
ISO 20022
Understand how ISO 20022 modernises global financial messaging through structured, data-rich formats, and how the Legal Entity Identifier (LEI) enables consistent, machine-readable identification of all parties across payment and reporting systems.
Overview
ISO 20022 is the global standard for financial messaging, providing a unified data model for payments, securities, trade finance, and regulatory reporting. It replaces fragmented legacy standards (such as SWIFT MT) with structured, extensible XML schemas.Objectives and scope
ISO 20022 enhances interoperability, automation, and data quality in financial communication. It is now adopted by major infrastructures including SWIFT, TARGET2, Fedwire, and CHAPS. The ISO 20022 standard designates the LEI as the preferred identifier within the OrganisationIdentification element for senders, receivers, and intermediaries. This allows direct linkage between payment participants and GLEIF-validated entity data.Why organisation identity matters
Structured identification of legal entities reduces ambiguity in payment routing and counterparty verification. LEIs ensure that parties referenced in ISO 20022 messages are globally consistent and machine-readable.Implementation insight
Financial institutions should:Request
Embed LEIs in message fields where applicable (e.g., OrgId/LEI).
Include
Validate LEIs against GLEIF’s database or use the RapidLEI API during message generation.
Relationships
Align internal systems with the ISO 20022 data dictionary.
Relationships
Use LEIs to reconcile payment, trade, and regulatory datasets.
