Why Your Bank May Request a copy of Your LEI?

In some cases, a bank may require a business to have an LEI as part of their due diligence process before opening a bank account.

Some reasons why a bank may request an LEI include:

1. Regulatory Compliance: Banks are required to comply with various anti-money laundering (AML) and know-your-customer (KYC) regulations, and may need to collect certain information about their customers, including LEIs, to ensure compliance.

2. Risk Management: Banks may use LEIs as part of their risk management practices to better understand the legal structure and ownership of the business, and assess their exposure to various entities.

3. Simplified Business Processes: The use of LEIs can simplify business processes, such as onboarding of new clients or counterparties. By requiring businesses to have an LEI, banks can streamline the account opening process and reduce the amount of time and resources required to verify the business's legal identity.

Some banks may request an LEI as part of their due diligence process for regulatory compliance, risk management, or to simplify business processes. It is important to research the specific requirements of your bank to determine if obtaining an LEI is necessary.