Legality of eSignatures in Bangladesh
Background
In the current digitalization of various processes to ensure timely, resource-friendly, and reliable services, countries across the globe are moving towards transformative techniques that help them meet their technological demands. Various local and international businesses, legal systems, and governments in Bangladesh and globally find electronic signing and document transfer faster, more eco-friendly, efficient, and secure than traditional wet-ink signing.
The fundamental law that defines, validates, and governs electronic signatures and digital signatures in Bangladesh is the Information and Communication Technology Act, 2006 (ICT Act).1 Section 6 of the ICT Act 2006 accords electronic signatures and records the same legal status as handwritten or traditional signatures, except for the listed cases of exception. This law clarifies that e-signed documents cannot be denied rights and effect, provided they comply with the set criteria. Nevertheless, certain documents may require a handwritten signature, and regional laws can differ, so consulting a legal expert is recommended.
Users should choose an electronic signature solution that adheres to Bangladesh’s eSignature laws and offers robust security measures. The chosen electronic signature provider should offer comprehensive protection measures, including encryption, identity verification, and detailed audit trails to prevent unauthorized access and preserve the integrity of documents. Platforms like BoldSign are equipped with these security provisions to uphold compliance and safeguard the signing process.
In summary, while electronic signatures offer numerous advantages and are widely accepted, it is critical to adhere to legal requirements, prioritize security, and select a user-friendly platform for successful deployment in Bangladesh.
Forms of electronic 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 the electronic signature framework in Bangladesh
The basis of eSignature policy law uses “digital signature” and “electronic signature” interchangeably to imply legally recognized criteria for signing.
The use of eSignature in Bangladesh is primarily governed by the Information and Communication Technology Act, 2006 (Act No. 39 of 2006). However, also relevant laws governing e- signature are:
- National Information and Communication Technology Policy 2018
- The Information Technology (Certifying Authority) Rules 2010 (CA Rules)
- The Certification Practice Statement published by the Office of the Controller of Certifying Authorities (CCA)
- The Digital Certificate Interoperability Guideline 2018
- The e-Sign Guideline for the Certifying Authorities 2020 (the e-Sign Guidelines)
- PKI Auditing Guideline 2020 (for CAs)
- The Cyber Security Act 2023 (the “CSA”)
In differentiating the level of security and verification, the electronic signatures are categorized into:
- Simple electronic signature
- Digital signature (Standard)
- Secure digital signature
Simple electronic signatures are any data or document in electronic form that is attached to or logically associated with another electronic data and serves as an authentication method.2
A digital signature is any data or document in electronic form that is related to any other electronic data directly or logically and can satisfy the following conditions for validating the digital signature:3
- Affixing with the signatory uniquely.
- Capable of identifying the signatory.
- Created safely or using a means under the sole control of the signatory.
- Related to the attached data in such a manner that is capable of identifying any alteration made in the data thereafter.
- Have a digital signature certificate issued by a Certification Authority.
Uniquely linked to a person
A secure electronic signature must be uniquely connected to the person using it. The Signature must be generated using methods only the signer can access, like a private key and confidential information, to verify their identity.
Use and incorporation remain in their sole control
The person using the secure 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.
Identify the person using the technological process
The process used to create the signature must be capable of identifying the person signing. This may include using a biometric signature, a Personal Identification Number (PIN), an email address, or a company registration number.
Track any alterations made after signing
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.
A secure digital signature is a security procedure applied to an electronic record at a specific point of time, then such record shall be deemed a secure electronic record from such point in time to the time of verification. If, by application of a security procedure agreed to by the parties concerned, it can be verified that a digital signature, at the time it was affixed, was4:
- Unique to the person affixing it.
- Capable of identifying the person affixing it.
- Created in a manner or using a means under the sole control of the person affixing.
- Meet all the requirements for standard digital signatures.
- Electronic signatures complying with the ICT Act 2006 and its related regulations are deemed valid in Bangladesh.
Summary analysis
| Type of eSignature | Unique features |
|---|---|
| Simple electronic signature | N/A |
| Digital signature (Standard) |
|
| Secure digital signature |
|
Amendment of electronic signatures laws
The government of Bangladesh may, by notification in the official gazette and in addition, optionally in the electronic gazette, make the following rules to prescribe for the purposes of eSignature Act5:
- The type of digital signature.
- The manner and format in which the digital signature shall be affixed.
- The manner and procedure that facilitates identification of the person affixing the digital signature.
- The control processes and procedures to ensure adequate integrity and security.
- Confidentiality of electronic records and payments.
- Any other matter which is necessary to give legal effect to digital signatures.
Scope and limitations of electronic signature transactions
The use of electronic signatures are 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
Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:6
- Legal opinions
- Offer letters
- Public petitions
- Memoranda and internal correspondences
- Non-disclosure agreements
- Purchase orders
- Human resources
- Procurement
- Employee onboarding
- End user agreements
Exempted transactions
The electronic signature regulations in Bangladesh lack an express provision on which transactions are not to be completed in electronic form. However, caution is to be taken when dealing with the following documents:
- Wills and testamentary documents
- Notarial documents and deeds
- Power of the attorney
- Surety (Guarantee) contracts
- Marriage documents
- Adoption papers, etc.
To ensure an electronic signature’s validity while complying with legal requirements. an individual should be able to adopt best practices such as:
- 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 clear and 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 the legal equivalence to a handwritten signature, thereby ensuring that all parties are fully aware and agree 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 the using of 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 demonstrating 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 electronic signature laws in Bangladesh:
- 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.
Syncfusion makes no warranties of any kind, including but not limited to the information or the product, whether express, implied, statutory, or otherwise. To the maximum extent permitted by law, Syncfusion disclaims all conditions, representations, and warranties, whether express, implied, or statutory, with respect to this information, without limitation of any implied warranty of merchantability, fitness for a particular purpose, accuracy, or currentness of this information.
Syncfusion nor its officers, directors, stockholders, employees, affiliates, attorneys, accountants, or agents shall be liable for indemnification, nor does this create an express or implied, contractual or statutory, equitable or otherwise, under this agreement. The officers, directors, stockholders, affiliates, attorneys, accountants, or agents will not have any liability in any form.
1 Information and Communication Technology Act, 2006 (Act No. 39 of 2006)
2 Information and Communication Technology Act, 2006(Act No. 39 of 2006); Article 2
3 Information and Communication Technology Act, 2006; Section 2(1)
4 ICT Act, (Act No. 39 of 2006), (n 1); Sections 16 & 17
5 ICT Act, (Act No. 39 of 2006), (n 1); Section 12
6 ICT Act, (Act No. 39 of 2006), (n 1); Section 8
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