A Legal Entity Identifier (LEI) is a unique 20-character code used to identify businesses and organizations that participate in financial transactions. It's like a global ID card for companies. The LEI helps regulators and financial institutions track the activities of these entities across borders, ensuring transparency and reducing risks in the global financial system.
So, if a company engages in activities like trading stocks, bonds, or other financial products, it might need an LEI to ensure compliance with international regulations.