Legality of eSignatures in Maldives

Background

Electronic signatures have streamlined the documentation authentication process, offering advantages to both in the Maldives and the global community. These digital mechanisms facilitate swift and environmentally conscious transactions by curtailing paper usage and hastening contract finalization.

For successful adoption in the Maldives, selecting an electronic signature tool that aligns with the nation’s legal stipulations, specifically the Electronic Transactions Act, is crucial¹. This is to ascertain electronic signatures’ legal validity compared to their handwritten counterparts in the Maldives. Despite the progressive acceptance, it’s essential to recognize that some documents may still need a physical signature, and seeking legal consultation is advisable to navigate variable regional laws².

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 provides these security measures to ensure regulatory compliance and security. 

Maldives’ enterprises must emphasize legal conformity, elevate security measures, and choose user-friendly platforms for integrating electronic signatures into their business frameworks. This approach boosts productivity and ensures the protection of their business exchanges.

Overview of the eSignature regulations

The Electronic Transactions Act regulates the operation of electronic signatures³. The Act gives eSignature the legal validity equal to that granted to the wet-ink signature before its enactment.

The Maldives regulation grants all individuals the freedom to execute their contracts upon agreement by the contracting parties electronically⁴. Such contracts however, shall not be denied legal validity merely because they were completed electronically⁵.

Under the Act, an electronic signature is any data, including a sound, symbol, or process, executed or adopted to identify a person and indicate that person’s approval or intention regarding the information contained in a data message and which is attached to or logically associated with that data message⁶.

Where a signature is required by law to be appended to a document, such a requirement is deemed met where the user applies a signature that is considered reliable by meeting the following set of conditions⁷.

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

Uniquely linked to the signer

A reliable electronic signature must be uniquely 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.

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 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 even a company registration number.

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 clearly 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 the location of the signature.

Summary analysis

Type of electronic signature	Unique features
Standard Electronic Signature	N/A
Reliable electronic signature	Uniquely linked to the signatories Capable of identifying the signers Developed using means that the signatory can maintain their control Linked to the data it relates to so that any subsequent change to the data is detectable

The scope and limitations of eSignature transactions

The use of an electronic signature is not recognized as legally binding for all document types. Some transactions are appropriate for eSignatures, 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 affixed as primary signatures and countersignatures on a diverse array of documents, such as:

Legal opinions
Offer letters
Memoranda & Internal correspondences
Non-disclosure agreements
Purchase orders
H.R.
Procurement
Employee onboarding, etc.

Exemptions

In limiting the scope of use of electronic signatures, the Act exempts transactions from the following regulations⁸:

Bills of exchange
Promissory notes
Notes of consignment
Bills of lading
Warehouse receipts or other transferable documents or instruments binding the bearer or beneficiary to receive or pay for the goods.

Summary of the scope and limitations of eSignature transactions

Permissible transactions	Exempted transactions
Legal opinions Offer letters Memoranda & Internal correspondences Non-disclosure agreements Purchase orders H.R. Procurement Employee onboarding	Bills of exchange Promissory notes Notes of consignment Bills of lading Warehouse receipts or other transferable documents or instruments binding the bearer or beneficiary to receive or pay for the goods.

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with the Maldives eSignature 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.

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 Electronic Transactions Act, No. 02 of 2022.-[https://mvlaw.gov.mv/dv/legislations/4/consolidations/3]
²Anna Nordén, ‘Electronic signatures in a legal context,’ in Cecilia Magnusson Sjöberg, editor, I.T. Law for I.T. Professionals – an introduction (Studentlitteratur AB; 2005) pp. 152-154; Ubena John, ‘E-documents & E-signatures in Tanzania: Their Role, Status, and the Future,’ p 104; Stephen Mason, ‘The practical issues in using electronic signatures in different jurisdictions,’ Computer and Telecommunications Law Review, 2021, Volume 27, Issue 6, pp. 165-179
³Electronic Transactions Act, No. 02 of 2022.- [https://mvlaw.gov.mv/dv/legislations/4/consolidations/3]
⁴S. 2 & 5
⁵S. 10
⁶S. 34
⁷S. 26(h)
⁸ S.4

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Google Integration, 25 free sends, dashboard, Signature font options, App is very responsive / fast, Emails between sender and signer are good, Audit trail is very helpful, No account needed for signer is great, Mobile experience is good for signer.

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We’re using BoldSign successfully in our b2b SaaS platform - as it’s embedded to allow seasonal farm workers and their agribusiness employers to e-sign their employment onboarding documents for the first time. It’s part of the total solution saving the workers and HR managers 50% more time compared to their traditional pen/paper manual process.

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Croft

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