Legality of eSignatures in El Salvador

Background

Electronic signatures are widely used globally, including in El Salvador, to validate, execute, and close agreements, contracts, and to streamline government and business processes due to their efficiency, legal recognition, and security. The use of electronic signatures has enhanced environmental sustainability by reducing the need for paper documents, thereby conserving trees and lowering administrative costs. Additionally, processes that once took days, weeks, or even months are now digitally authenticated and completed within minutes by the designated signatories. Nevertheless, when implementing electronic signatures within El Salvador, it is essential to grasp the critical factors involved.

Users must choose an electronic signature service compliant with El Salvador laws, notably the Decree N° 133 Electronic Signature Law (2015) of the Republic of El Salvador and Legislative Decree N° 100 (2021). Decree N° 133 grants an electronic signature the same legal validity as the handwritten signature.¹ Even though electronic signatures are widely accepted in El Salvador, some documents require physical signatures, and seeking legal counsel is advisable to navigate local regulatory nuances.

Security is of utmost importance in eSignature usage. Services must integrate robust protection features such as data encryption, verification of signer details, and audit trails to prevent unauthorized access and ensure document authenticity. For instance, BoldSign offers these imperative security features and complies with legal and security protocols.

In summary, while eSignatures are indispensable for secure, efficient, and legally valid digital transactions, they form the backbone of Salvadoran digital transformation strategy.

Overview of electronic signatures in El Salvador

Electronic signatures are considered just as valid as paper-based handwritten signatures or seals, and cannot be considered invalid just because they are electronic signatures; however, their use is subject to specific regulations and amendments:

• Decree N° 133; The Electronic Signature Law (2015)
• Legislative Decree N° 100 (2021)

Decree No 133 is the primary law governing the use of electronic signatures in El Salvador. The law divides electronic signatures into:

• Simple electronic signatures
• Certified electronic signatures

Simple electronic signatures are data in electronic form, recorded in a data message or electronic document, logically associated with it, which can be used to identify the signatory by any available technological means, and indicate that the signatory approves the information contained in the data message or electronic document.² As for its legal effects, simple electronic signature does not have evidentiary validity to the same extent as that granted to the certified electronic signature; however, it may constitute an element of evidence in accordance with the rules of sound criticism.

Certified electronic signatures are data in electronic form, contained in a data message or electronic document, logically associated with it, generated by a secure creation device, and allows the signature to be exclusively linked to its owner.³ A certified electronic signature must meet the following requirements:⁴

• Bind the signatory in a unique way
• Be based on an electronic certificate issued by a Certification Service Provider
• Allow unequivocal verification of the authorship and identity of the signatory
• Created using reliable and secure means of creation and verification, under the sole control of the signatory
• Linked to the information in such a way that any subsequent modification of the information is detectable
• Electronic certificates issued for certified electronic signatures shall comply with the statutory requirements at the time of signing

Uniquely linked to the signer

A secure electronic signature must be connected to the person using it. The signature must be uniquely created using methods only the signer can access, like a private key and confidential information, to verify their identity.

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 biometric signatures, personal identification number (PIN), email addresses, or company registration number.

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 holding the private key exclusively to prevent signature forgery.

Track down 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 place.

Summary analysis

Legislative Decree N° 100 (2021) and Decree N° 133; The Electronic Signature Law (2015)

Recognition of foreign electronic signatures in El Salvador

Certificates issued by foreign electronic signature certification service providers may be recognized under the same terms and conditions established by Salvadorian Law on electronic signatures for national certificates, when they meet one of the following conditions:⁵

• The certificates are recognized through agreements with other countries, either bilateral or multilateral, or within the framework of international organizations to which the country belongs.
• If the certificates are issued by certification service providers duly endorsed in their country of origin or institutions equivalent to the electronic signature unit, which require standards for their recognition that guarantee security in the creation and regularity of the certificate, as well as its validity.
• It is accredited that such certificates were issued by a certification service provider that meets the minimum standards required for a certification service provider of electronic signatures registered in the electronic signature unit.

Foreign electronic certificates that do not meet the aforementioned conditions will lack the legal effects attributed to them in accordance with this regulation; however, they may constitute an element of conviction to be assessed in accordance with the rules of sound criticism.

Accredited certification service providers in El Salvador

The certification service may only be provided by those legal persons, public or private, national or foreign, that comply with the requirements established in the competent laws to operate in the country, and that demonstrate for their authorization and during the entire period in which the certification services are provided.⁶

Scope and limitations of the electronic signatures

Electronic signature transactions and their applications do not universally possess legal recognition for completing documents. Accordingly, certain categories of transactions and uses are appropriate for electronic signatures, whereas others are not. The following is an analysis of this issue, along with a summarized table of the 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:

• Human resources
• Procurement
• Software license agreements
• Insurance industry
• Educational field
• Offer letters
• Public petitions
• Commercial contracts
• Non-disclosure agreements (NDAs), etc.

Exempted transactions

Caution should be exercised when handling certain sensitive documents in El Salvador, which may require a handwritten signature for their execution. These exclusions typically include:

• Certificates of inheritance rights
• Unique identity documents such as passports and other identity documents, and death certificates
• Wills and trusts
• Family law documents, such as marriage, divorce, and adoption documents

Summary

To guarantee the legitimacy of an electronic signature, it is recommended to adhere to the following best practices while also ensuring compliance with all relevant legal obligations:

• Verify the identity of the person signing and, in companies, confirm that the individual is legally authorized to commit the company with their signature.
• Obtain explicit consent from the person signing, which can be included in the contract itself or provided through a separate consent document, acknowledging their intent to use the chosen electronic signature method for the document.
• Safeguard the document against any alterations post-application of the electronic signature.
• Maintain a detailed record of the signing process, documenting each action performed by the person executing the signature.

How does BoldSign help

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

• 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, warranties of merchantability, fitness for a particular purpose, or accuracy.

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