Tackling Corporate Fraud: For more Transparency in Global Trade

The motto of the World Economic Forum 2025 ‘Collaboration for the intelligent age’ makes it clear: the fight against money laundering and financial crime through transparency and secure company identification.

Davos. – In the shadows of the global economy, criminal activities continue to thrive. The scale, sophistication, and impact of corporate fraud have reached unprecedented levels worldwide. The global economy is determined to confront these challenges head-on.

Under the theme “Collaboration for the Intelligent Age,” the World Economic Forum 2025 in Davos focuses on global cooperation and technological innovation. Among the key voices, Alexandre Kech, the newly appointed CEO of the Global Legal Entity Identifier Foundation (GLEIF), demonstrates how the fight against financial crime can be revolutionized. GLEIF, a nonprofit organization founded by the Financial Stability Board of the G20, is headquartered in Basel, Switzerland.

Global Challenges Require Unified Solutions

Financial crime has reached alarming proportions. According to Interpol’s “Global Financial Fraud Assessment,” $3.1 trillion in illicit funds flow through the global financial system annually. Fraud has become increasingly sophisticated, causing financial losses and eroding trust in businesses.

“Without transparency, there is no progress,” Kech asserts in Davos. The Legal Entity Identifier (LEI) offers a promising solution. With its globally standardized ISO format, the LEI acts like a company’s passport, providing clear and unique identification. This fosters trust among business partners and sheds light on ownership structures.

LEI and vLEI: Building Trust in a Connected World

The LEI, a 20-character code, identifies companies worldwide with precision. Its digital counterpart, the verifiable LEI (vLEI), extends this concept into the digital realm. For instance, a tea trader in Hamburg can be confident that payments are sent to the correct supplier in Vietnam. “Our goal is to create a global trust network based on standardized and secure identity verification,” Kech explains.

Companies using the LEI benefit from streamlined processes. Tasks such as due diligence or onboarding new partners can be automated and accelerated. Additionally, the LEI ensures compliance with international regulations. The vLEI enhances this capability by enabling real-time verification of corporate data—a milestone in efficiency and security.

“Collaboration for the Intelligent Age”: A Vision for Global Transformation

The theme of the World Economic Forum 2025 highlights the urgent need for global collaboration in an increasingly technology-driven world. Innovations like the LEI and vLEI exemplify this vision, promoting transparency and trust. “Digitalization is not just a challenge; it’s an opportunity. Transparency is the key to a sustainable, digital, and secure economy,” emphasizes Kech.

GLEIF is steadily advancing this mission. With an international team from over 20 countries, the organization brings together expertise and diverse perspectives. Kech, a seasoned expert in blockchain technologies and digital security, is well-equipped to drive this vision forward.

Davos 2025: A Starting Point for a New Era

The World Economic Forum provides a platform to spotlight solutions like the LEI and vLEI. “The fight against financial crime starts with clear identification,” Kech concludes. Transparency is not only an obligation but also a strategic opportunity for companies aiming to be part of a secure and trustworthy global economy.

The message from Davos is unequivocal: innovation and collaboration pave the way for a resilient and sustainable future. Transparency and trust remain the cornerstones for tackling the challenges of the digital age—in line with the theme “Collaboration for the Intelligent Age.”

Alexandre Kech, GLEIF, will appear at two events during the World Economic Forum:

  • January 22, 2025, 10:30 am – 1:00 pm CET: The OpenWallet Forum High-Level Panel Event, Maison Suisse, Davos, Switzerland. Hosted by the Swiss Confederation in collaboration with the International Telecommunication Union (ITU) and the Linux Foundation.Alexandre Kech takes part without an active speaking part.
  • January 21, 2025, 12:40 pm – 1:15 pm CET: Speaking at GBBC’s 8th Annual Blockchain Central Davos, Global Standards in partnership with DTIF & ANNA, Grandhotel Belvédère.

GLEIF
www.gleif.org

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