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.
Responsibilities and obligations
A few examples of an ASE’s responsibilities and obligations include:
- Regulatory compliance
- Account provisioning and maintenance
- Transaction handling
- Ledger management
- Authentication and consent
Regulatory compliance
ASEs must onboard account holders in compliance with regulatory requirements, such as performing Know Your Customer (KYC) checks, anti-money laundering (AML) processes, and sanctions screening.
Account provisioning and maintenance
ASEs manage the creation, upkeep, and security of payment accounts. This includes providing channels for account holders (individuals or businesses) to interact with their accounts via mobile apps, websites, and other interfaces.
Transaction handling
ASEs handle deposits and withdrawals through various external payment methods such as bank transfers, credit cards, and other payment services.
Ledger management
ASEs maintain a ledger of account balances and transaction histories for their account holders.
Authentication and consent
In the context of Open Payments, ASEs are responsible for authenticating resource owners (e.g., account holders) and obtaining their consent when clients, such as mobile apps, request access to a resource (e.g., an account).