Account servicing entity (ASE)
An account servicing entity (ASE) is a regulated entity that provides and maintains payment accounts for its customers. Examples of ASEs include banks, digital wallet providers, and mobile money providers.
As regulated entities, ASEs are subject to the laws, rules, and regulations of their jurisdictions. As such, Rafiki should not be used in production environments by non-regulated entities.
ASEs follow anti-money laundering laws and regulations to detect and prevent money laundering and other suspicious financial activities.
KYC and KYB practices ensure ASEs verify the identities of their customers by collecting IDs and proof of address, verifying business registrations, checking against sanctions lists, and other processes.
ASEs manage the creation, upkeep, and security of their customers’ accounts and balances therein. Similarly, they’re responsible for authenticating their customers and providing secure channels for them to interact with their accounts via mobile apps, websites, or other interfaces.
As ASEs handle deposits and withdrawals through external payment methods (like bank transfers, credit cards, and other services) they must record all transactions and balance information in their ledger.