E-signatures: How they work
Electronic signatures are digital versions of your signature that indicate your agreement to the contents of a document or contract when you sign it online. They provide a hassle-free way to sign documents remotely, eliminating the need for physical paperwork and enabling faster and more streamlined transactions.
They are legally binding for a variety of purposes and can either be typed, drawn on the screen of an electronic device, or uploaded from your desktop. This modern alternative to "wet" signatures has been adopted across the world, as it empowers individuals and businesses to sign documents online in a legal, secure, and efficient way.
The growing importance of e-signatures in the Maldives
In recent years, digital signatures have become the preferred method of securing signatures in the Maldives due to their advanced security and efficiency. As more online businesses and brick-and-mortar stores expand their offerings in the digital space, the use of e-signatures has surged. These signatures streamline transactions and facilitate secure approvals, allowing companies to navigate the ever-evolving market more effectively.
By adopting e-signatures, Maldivian businesses can boost their competitiveness, promote cross-border collaboration, and support the nation's vision of building a more resilient and technology-driven economy. Zoho Sign, a digital signature solution, protects your documents with top-notch management and verification, making it the top choice in the region.
Implementing Zoho Sign can empower businesses to optimize their performance by addressing essential needs, including:
- Speed
- Productivity
- Authentication
- Security
- Remote access
- Improved user experience
- Cost-effectiveness
E-signature adoption in key industries
In the Maldives, various industries are rapidly adopting e-signatures to enhance efficiency, streamline workflows, and comply with regulatory requirements. Here are some of the prominent industries leveraging e-signatures:
Electronic Signatures in Legal context
The Electronic Transactions Act (ETA) in the Maldives provides a framework to ensure the validity of electronic transactions, including electronic signatures, and encourages the use of trust services to support secure and efficient electronic commerce.
Article 34 of ETA defines an "Electronic Signature" as, "electronic data included with the data message or associated with it by general rules in order to identify the signer of the data message and to express the signer's intention in relation to the information contained in the data message."
Maldivian law and the validity of Electronic Signatures
If a signature is required by law, an Electronic Signature can fulfil this requirement as long as it is reliable and serves its intended purpose. Any technology that generates an Electronic Signature is considered legally valid and cannot be denied or restricted.
It is considered reliable if it meets the following conditions:
- The signature creation data is unique to the signer.
- The signer has exclusive control over the signature creation data at the time of signing.
- Any alterations to the signature after it is applied are detectable.
- Any changes to the signed information can be identified.
Trust Service Providers
A Trust Service Provider is a person who provides one or more trust services, including the issuance and maintenance of electronic signature certificates.
A electronic signature certificate is a data message or other record confirming the relationship between the signatory and the signature creation.
The Ministry is responsible for establishing a publicly accessible register of accredited trust service providers. Additionally, the ETA mandates that the Ministry establish rules and procedures for accrediting trust services, which would cover areas like accreditation, renewal, compliance, and legal consequences.
Recognition of foreign digital certificates
When assessing the legality or scope of a trust service, the following geographic factors are not taken into account:
- The location where the trust service is created or used.
- The location of the Trust Service Provider, signatory, or user at the time of the transaction.
A trust service created or used abroad carries the same legal force as a local Electronic Signature, if it meets a comparable level of reliability. This reliability is evaluated based on relevant international standards and principles.
Furthermore, if parties agree to use a specific trust service within a legally valid agreement, that service is legally recognized, regardless of its geographic origin.
Scenarios where e-signatures are not permissible
Electronic Signatures can be used for any transaction except those specified below:
- Bills of Exchange
- Promissory Notes
- Notes of Consignment
- Bills of Lading
- Warehouse Receipts
- Other Transferable Documents or Instruments that entitle the bearer or beneficiary to receive or pay for goods.
Additionally, parties involved in a transaction or agreement can mutually decide to exclude the use of electronic signatures for that specific agreement or transaction.
Zoho Sign: Enabling secure e-signatures for businesses in the Maldives
Reliable signer identification:
Zoho Sign offers various authentication methods, such as email authentication, SMS authentication, and dynamic knowledge-based authentication, for reliable identification of the signatory.
Intention of the signatory:
This can be collectively projected by the contents of the electronic documents (like the terms in an agreement), audit trail, and completion certificate.
Detectable alterations to the signature:
Zoho Sign ensures any alterations to the electronic signature or the document to which the signature is affixed are detectable through an elaborate audit trail of occurrence of all activities during the signing process. This audit trail comprises critical information such as the identity of the signatory and the timestamp of the signature, making it easy to identify any changes made to the signature.
Identifiable changes to signed information:
In addition to tracking alterations to the signature, Zoho Sign offers a detailed log of all changes made to the content of signed documents. This feature allows users to track modifications effortlessly, ensuring that the integrity and authenticity of the signed information are preserved throughout the document's lifecycle.
Encryption and security measures:
Zoho Sign employs robust encryption protocols, such as military-grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure data transmission between the signing platform and the data being signed is secure. This prevents the exposure of documents and data from data breaches.
Document timestamping
A digital timestamp is a digitally signed notation that is appended to the electronic data, digital signature, or certificate that indicates that certain digital data exists at a certain point in time. This process securely binds the date and time to the document, ensuring its authenticity and integrity.
Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for electronic transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered. This adds a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.
Key takeaway
The adoption of e-signatures in the Maldives has significantly enhanced operational efficiency for businesses across the country. Our secure and feature-rich platform provides a hassle-free signing experience, making it a valuable tool for businesses seeking to streamline their legal workflows and excel in the digital landscape.
This advancement allows users to engage and collaborate globally from the convenience of their homes at a low cost. Start your free trial of Zoho Sign today and embrace a new era of efficient and secure agreements.
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Disclaimer
The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.