Like our popular "Inside the LEI" series, Alacra's latest Reference Data Alert goes"Inside the GIIN" to detail this identifier and the universe it covers.
The GIIN or Global Intermediary Identifier Number is issued by the IRS to foreign financial institutions (FFIs) as part of the Foreign Account Tax Compliance Act (FATCA). The goal of FATCA is to reduce US tax evasion by requiring FFIs such as banks, funds, trusts, asset managers and insurance companies to report certain information to the IRS about their US accounts. While insitutions can choose not to comply with this requirement they will be subject to a 30 percent withholding tax on some of their US-sourced payments. In addition, noncompliance could be perceived as an attempt to shield US tax evaders and can create an unnecessary reputational risk for the the institution. Each of the entities is assigned one of five roles...Download your copy of Alacra's Inside the GIIN - Issue I
In the world of KYC, Google has become a ubiquitous component of client onboarding, CDD, EDD and Vendor Due Diligence best practices. Searches are often written once and then enshrined in procedures. As a supplement to checks against traditional sanctions, public record, PEP, criminal record, litigation and specialized adverse media providers, a Google search can reveal valuable, risk relevant insights. However, a simple Google search on the subject name will return a great number of results, most of which are neither adverse nor relevant. Many financial institutions attempt to reduce the results to a more manageable quantity by using Boolean logic. That’s where it gets a little tricky.
Google’s search algorithm evolvesGoogle is often admired for its agility, and its ability to create, deploy, assess market demand for and decide the fate of new products in a matter of days. The search algorithms are similarly agile, constantly changing to improve the search experience. For this reason, the search string entered today may yield different results tomorrow. Why is this?
Google’s algorithms learn something about your preferences every time you search. Future search results are then ordered based on your implied areas of interest. So your employees’ lunchtime surfing activities could lead to different search results from different users.
Publishers have access to a powerful range of SEO tools and are constantly working to make sure their results are as high on the search results list as possible. Google, from time to time, will improve the algorithms. A recent example is that when you search from a mobile device, priority is given to content that is highly compatible with the mobile devices, potentially demoting relevant information.
You say tomato, I say tomato
Google operates country specific domains, each of which presents search results with a geographical preference. So if like the former British Empire, the sun never sets on your KYC process, you could see significantly different news results depending on which country the search is conducted in. Try searching for “Parliament” at www.google.com, www.google.co.il and www.google.co.uk.
Do you speak Google?
Seasoned investigators, IT professionals and programmers share a common language of syntax, operators, wildcards and other tools that help target and refine searches. The challenge is that Google’s syntax is dynamic and unique. For example:
Of course in the above examples, as the search results are the same, it doesn’t really matter if you have redundant AND, parenthesis, ~ or + operators. However, there are other scenarios in which knowing how to speak Google will improve your results:
“one OR two OR three OR four OR five OR six OR seven OR eight OR nine OR ten OR eleven OR twelve OR thirteen OR fourteen OR fifteen OR sixteen OR seventeen OR eighteen OR nineteen OR twenty OR twentyone OR twentytwo OR twentythree OR twentyfour OR twentyfive OR twentysix OR twentyseven OR twentyeight OR twentynine OR thirty OR thirtyone OR thirtytwo OR thirtythree”
and you will receive the following error message:
"thirtythree” (and any subsequent words) was ignored because we limit queries to 32 words.
Last week the Federal Reserve put out a press release announcing a proposal that would seem to mandate the use of LEIs on certain regulatory reporting forms:
The Federal Reserve Board on Monday announced a proposal that would require banking organizations to include their existing Legal Entity Identifiers (LEIs) on certain regulatory reporting forms. The LEI is a unique reference
None of the benefits that could be gleaned from the establishment of the Legal Entity Identifier has been realized, and there is no evidence that the status quo will change anytime soon. To jumpstart the adoption and usefulness of the LEI, regulators either must mandate the world’s largest financial institutions register or pay them to comply.
Recently, the Global Legal Entity Identification Foundation (GLE
Recent conversations with executives close to the GLEIF (Global Legal Entity Identification Foundation) revealed an underlying conflict in the creation of the LEI database. The LEI registration process and data collection activities are being optimized for three constituencies: the regulators, the registrants, and the Local Operating Units (LOUs). However, a fourth constituency, equal in importance to the other th
The GLEIF (Global Legal Entity Identifier Foundation) in concert with the GFMA (Global Financial Markets Association) held a webinar this morning to give market participants an update as to the state of the GLEIS (Global Legal Entity Identifier System). Speakers included Robin Doyle of JP Morgan, Matthew Reed of the Office of Financial Research and Stephan Wolf, the CEO of the GLEIF.
A few things that I le