In today’s interconnected world, cross-border transactions are the lifeline of trade, investment, and global banking. Whether it’s an Indian exporter sending goods to Europe or a multinational company routing funds across continents, two identifiers often come up: the Legal Entity Identifier (LEI) and the SWIFT Code. At first glance, they may seem similar, but in reality, they serve very different and equally important purposes.
What Is an LEI Number?
A Legal Entity Identifier (LEI) is a unique 20-character alphanumeric code issued to companies, trusts, partnerships, and other legal entities. It’s like a global ID card for businesses, ensuring that no two organizations in the world are confused for one another.
The system is governed by the Global Legal Entity Identifier Foundation (GLEIF), a non-profit established by the Financial Stability Board. In India, regulators such as RBI and SEBI have already mandated its use in financial transactions to bring transparency and accountability.
In short: If your company is engaging in financial markets, large transactions, or international trade, having an LEI is no longer optional, it’s a requirement.
What Is a SWIFT Code?
A SWIFT Code (short for Society for Worldwide Interbank Financial Telecommunication Code), also known as a Bank Identifier Code (BIC), is an 8 to 11-character code that identifies a particular bank branch anywhere in the world. Think of it as the GPS coordinates of a bank in the international financial system.
The SWIFT network, headquartered in Belgium, is a member-owned cooperative that connects over 11,000 financial institutions globally. When you send or receive money abroad, the SWIFT Code ensures that funds are routed to the correct bank. For example, if you’re transferring money from Mumbai to New York, the SWIFT Code makes sure your funds land in the right bank, in the right country.
LEI vs SWIFT: What’s the Difference?
Although both LEI and SWIFT are governed by global bodies, they serve distinct purposes:
● LEI = Who is the business behind the transaction? (Entity-level identity managed by GLEIF)
● SWIFT Code = Which bank is moving the money? (Bank-level routing managed by the SWIFT cooperative)
They are not interchangeable. Instead, they complement one another to make cross-border transactions both transparent and efficient.
Do You Need Both for Cross-Border Transactions?
Yes, in many cases, you need both.
● The SWIFT Code ensures that funds are sent to the correct bank across borders.
● The LEI ensures that regulators, counterparties, and financial institutions know the true identity of the business behind the transaction.
For example, if an Indian exporter is receiving payments from Europe, the buyer’s bank will use a SWIFT Code to direct the funds. At the same time, regulators may require the exporter to provide an LEI to prove the legitimacy of the business receiving the funds.
In India, the RBI has already mandated LEIs for cross-border transactions above a certain threshold, making it clear that LEI is now part of the compliance framework alongside traditional banking identifiers like SWIFT.
Why Get Your LEI Code from TNV LEI?
When it comes to compliance, the partner you choose matters just as much as the process. TNV LEI (LEI International Pvt. Ltd.) is India’s first private Local Operating Unit (LOU)
directly accredited by the Global Legal Entity Identifier Foundation (GLEIF). Unlike Registration Agents (RAs), who only act as intermediaries, we issue LEIs directly, which means faster processing, lower costs, and no hidden steps.
Our fully digital system ensures quick turnaround, often within 24 hours once documents are verified. Pricing is transparent and affordable, with no mark-ups. Beyond issuance, we make renewals and transfers simple, offering timely reminders and hassle-free management so your compliance is never interrupted.
In short, choosing TNV LEI means dealing directly with an accredited Indian LOU that combines local regulatory expertise with global recognition. It’s not just about getting a code, it’s about securing a badge of trust for your business, backed by a reliable partner who speaks your compliance language. Secure your LEI directly with TNV LEI today. Visit www.tnvlei.com and get started in minutes.