Legality of eSignatures in Armenia

Background

Electronic signatures have streamlined the documentation authentication process, offering advantages to both Armenia and the global community. These digital mechanisms facilitate swift and environmentally conscious transactions by curtailing paper use and hastening contract finalization. Nevertheless, it is critical to consider key factors when implementing eSignatures in Armenia. 

For Armenia-based transactions, users should opt for an electronic signature provider in accordance with the Law of the Republic of Armenia HO-40-N of December 14, 2004, "On electronic documents and electronic digital signatures.” The law provides that electronic digital signatures have the same legal validity as handwritten counterparts.¹ However, one should note that certain documents may still necessitate traditional wet signatures, and given that local laws can vary, it is advisable to consult with legal experts. 

The security measures offered by the eSignature service are paramount. The provider must guarantee robust security protocols, including encryption, authentication mechanisms, and audit logs, to prevent unauthorized access and affirm the document's authenticity. BoldSign offers these security provisions to meet regulatory compliance and security. 

In essence, electronic signatures are widely recognized and provide substantial benefits. Yet, their successful deployment hinges on adherence to legal norms, security assurances, and the selection of a user-friendly platform. 

What is an electronic digital signature

An electronic digital signature is a unique sequence of symbols obtained through cryptographic transformations of the information in a given electronic document and presented in electronic digital form, which is attached or logically related to the electronic document and is used to identify the signer as well as to protect the electronic document from fraud and distortion. eSignatures in Armenia are legally binding on most documents, provided they can be unequivocally linked to the individual signing. Additionally, it is essential that the signatory’s intention to sign is clear, indicating deliberate consent to the conditions outlined in the document.

Forms of electronic digital signature

An electronic signature encompasses a variety of digital forms attached to an electronic document or procedure. These forms can be:

• Using app login credentials to give permissions
• Signing with a stylus or finger on a touchscreen device
• Entering a name into an email as a form of signing off
• Confirming agreement on a web page with a click post-verification
• Adding a digitized image of a handwritten signature
• Employing a spoken command to serve as an oral consent

Overview of electronic signature regulations in Armenia

In Armenia, the use of electronic digital signatures is governed by:

• Law of the Republic of Armenia HO-40-N of December 14, 2004 "On Electronic Documents and Electronic Digital Signatures.”
• The Law HO-69-N On Amendments and Changes to the Law of the Republic of Armenia "On Electronic Document and Electronic Digital Signature." Adopted on March 1, 2017.
• The Law HO-226-N On Amendments and Changes to the Law of the Republic of Armenia "On Electronic Document and Electronic Digital Signature.” Adopted on December 17, 2014.
• Civil Code of Armenia

The primary law, Law HO-40-N, provides that electronic documents cannot be denied legal validity, provided it can be proved that they have not been modified. Additionally, identical copies of electronic digital signatures possess the same value and significance, and none is considered more authentic.² The law categorizes eSignatures into:

• Simple electronic signatures
• Electronic digital signatures

A simple electronic signature is defined as any data in electronic form, attached to or logically associated with other data in electronic form, used by a signatory to sign.

An electronic digital signature is guaranteed as an electronic digital signature provided that it is created using a secure creation device and based on a certificate issued to an individual, valid at the time of signing. It must meet the following requirements:³

• Uniquely linked to the signatory
• Linked to the data it relates to so that any subsequent change to the data is detectable
• Capable of identifying the signatory
• Created using means that the signatory can maintain their own control

The certificate for an electronic digital signature should contain the following information:⁴

• The unique registration number of the certificate according to the center
• A person's name, surname, or pseudonym (the name of the person)
• Electronic digital signature verification data
• The date, month, and year of issuance of an electronic digital signature certificate

Validity requirements for an electronic digital signature

Uniquely linked to the signatory​

An advanced electronic signature must be uniquely linked to the person using it. The signature must be uniquely generated using methods that only the signer has access to, like a private key and confidential information, to verify their identity.

Use and incorporation remain in their sole control

The person using the advanced electronic signature must have sole control over the means of creating the signature. Typically, this requires managing a key pair or two-factor authentication, with the signer exclusively holding the private key to prevent unauthorized signature forgery.

Allows the signer to be identified

The process used to create the signature must be capable of identifying the person signing. This may include using biometric signatures, personal identification numbers (PIN), email addresses, or company registration numbers.

Detect any alterations made to the document

It is essential to preserve the authenticity of the signed document. Modifications made to the document post-signature should be identifiable. This is commonly accomplished through an audit trail. Audit trails record the signer’s IP address, timestamps of key-signing events, and location, providing proof of identity, timing, and signature place.

Summary analysis

Recognition of foreign electronic signatures in Armenia

Certificates of electronic digital signatures issued by certification centers in other countries are equivalent to certificates issued by certification centers accredited in Armenia, in the presence of relevant interstate agreements with those countries.⁵

Where the international treaties of the Republic of Armenia stipulate different norms from the ones provided by the electronic signature laws in Armenia, the norms of the International Treaty shall apply.⁶

Accreditation certification centers in Armenia

The electronic system created to perform services or operations using an electronic digital signature must comply with the security, interoperability, and general technical requirements established by the government of the Republic of Armenia.⁷ Central Bank of Armenia⁸ and EKENG" CJSC are some of the accredited certification centers in Armenia.

Scope and limitations of electronic digital signature transactions

The use of electronic digital signatures is not legally recognized for all document types. Some transactions are appropriate for electronic signatures, while others are not. Below is a brief analysis and a summary table of these transactions.

Documents that can be signed electronically

Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:

• Legal opinions
• Offer letters
• Public petitions
• Memoranda and internal correspondences
• Non-disclosure agreements
• Purchase orders
• HR
• Procurement
• Employee onboarding
• End user agreements, etc.

Documents that require Armenia’s traditional signature

The primary law on electronic signatures in Armenia provides express legal exclusions of documents that cannot be signed electronically if there are no appropriate technical means. These are:⁹

• State-based documents
• Power of attorney, etc.

Caution should also be taken when dealing with formal notarial processes, family law documents, wills, and testamentary documents.

Summary of the scope and limitations

To ensure an electronic signature’s validity while complying with legal requirements, an individual should be able to adopt the following best practices:

• Establishing the legitimacy and authorization of the signatory: This involves implementing stringent procedures to authenticate the identity of individuals signing on behalf of themselves or an entity. For businesses, this step may include verifying the individual’s position within the company and their delegated power to sign documents, ensuring they have the proper authorization to enter into binding agreements on the company’s behalf.
• Obtaining unambiguous agreement for the use of electronic signatures: It is critical to secure informed consent from all parties involved before utilizing electronic signatures. This means explaining the implications of an electronic signature, how it will be used, and its legal equivalence to a handwritten signature, thereby ensuring that all parties are fully aware and agreeable to the electronic signing process.
• Ensuring the integrity of the signed document post-execution: Once a document has been signed electronically, measures must be taken to safeguard it from any unauthorized alterations. This can involve using digital tools that lock the document’s content and track any attempts at modifications, thereby maintaining the document’s integrity and ensuring it remains legally enforceable.
• Maintaining a detailed log of the electronic signing activity: Keeping a robust and detailed audit trail is essential for validating the signing process. This record should include timestamps, IP addresses, signer authentication methods, and any other relevant information that documents the entire signing event. Such records are crucial for providing evidence of the legitimacy of the signing process and can be invaluable in the event of a legal dispute or audit.

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with Armenian electronic signature laws:

• Secure and unique signing link: A secure and unique link to sign a document is sent directly to the signer's email address. This ensures that the document is only accessed by the intended signer and cannot be tampered with.
• Password protection: Senders can specify a password that needs to be entered before viewing and signing a document. This adds another layer of security to the signing process.
• Audit trail: The IP address of the signer and timestamps for all significant events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when, and where.
• Digital signature: The final document is digitally signed with an AATL-compliant certificate. This ensures that the document cannot be tampered with without invalidating the signature.
• Consent: Signers are asked to confirm their intent to sign electronically and informed that they could opt out. This ensures that the signer is aware of the implications of signing electronically and has given their consent.
• Custom terms: Get your signers to agree to a custom set of terms. This can be useful to ensure additional security or that the signer understands the terms of the document.

Disclaimer: The information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.

However, Syncfusion’s officers, directors, stockholders, affiliates, attorneys, accountants, employees, or agents cannot provide legal advice. You should consult your personal attorney regarding your specific legal questions. Laws and regulations are subject to frequent changes, and the information may not be current or accurate. To the maximum extent permitted by law, Syncfusion provides this material on an “as-is” basis. Syncfusion disclaims and makes no representation or warranty of any kind with respect to this material, express, implied, or statutory, including representations, guarantees, or warranties of merchantability, fitness for a particular purpose, or accuracy.

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