Electronic Signature in Papua New Guinea

SigniFlow Software and the Electronic Transactions Act, 38 of 2021

Electronic Signatures in Papua New Guinea

The Electronic Transactions Act of 2021 permits the use of electronic signatures in Papua New Guinea and regulates e-commerce transactions.

“Electronic Signature” means any symbol or other data in electronic form, affixed to or logically associated with a data message, which may be used to identify the signatory in relation to the data message and to indicate the signatory’s intention in respect of the information contained in the data message.

Standard electronic signatures and digital signatures are widely accepted in Papua New Guinea.

Legality of Electronic Signatures in Papua New Guinea

Section 25(1) states that where the law requires the signature of a person or a party in relation to an electronic record or data message, that requirement of the law is satisfied if an electronic signature is used.

SigniFlow Software complies with all aspects for the provisioning of electronic signatures in Papua New Guinea as provided for in the Electronic Transactions Act of 2021.

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Definitions contained in the Act:

“certificate” means (a) a data message; or (b) other record confirming the link between a signatory and signature creation data; or (c) the link between a trust service and its relevant trust service data.

“trust service” means the electronic service that provides a certain level of reliability in the quality of data and includes electronic signatures, seals, time stamps, delivery services and webside authentication, any related certificate and their retention.

“trust service provider” means a person who provides services related to a trust service.

Exclusions

Section 5 makes provision for exclusions to the rules of the Ac and as such these documents cannot be signed using electronic signatures:

• Transaction on a regulated exchange
• Foreign exchange transactions
• Inter-bank payment system, inter-bank payment agreements or clearance and settlement systems relating to securities or other financial assets or instruments
• The transfer of security rights in sale, loan or holding of, or agreement to repurchase securities or other financial instruments or assets held with an intermediary
• Transaction and matters relating to private law, including marriages, divorce, the creation or execution of a will or any other testamentary disposition
• A Power-of-Attorney
• A trust, excluding a constructive, implied and resulting trust
• Any document required to be attested before a notary public
• Any other documents specifically excluded by a law of Papua New Guinea.

Equal Treatment of Signature Technologies

Section 24 of the Act provides that nothing in the Act, unless provided for in section 6 (Party Autonomy) must be applied to exclude, restrict or deprive of legal effect any method of creating an electronic signature that satisfies the requirements referred to in the Act or meets the requirements set out in other applicable regulations.

Considerations for an Electronic Signature to be deemed reliable

Section 25(4) of the Act provides the following requirements that an Electronic Signature must meet

• The signature creation data is within the context in which it is used, linked to the signatory and of no other person or party
• The signature creation data was, at the time of signing, under the control of the signatory and of no other person or party
• Any alteration to the electronic signature, made after the time of signing, is detectable
• The purpose of the legal requirement for a signature is to provide assurance as to the integrity of the information to which it relates, any alteration made to the information after the time of signing is detectable.

SigniFlow meets all of the obligations and requirements as set out above when it comes to the requirements for a valid electronic signature.

Recognition of Foreign Electronic Signatures and Trust Services

Foreign Signature providers are allowed to provide Electronic Signatures and other Trust Services in Papua New Guinea as provided for in Section 27 of the Act.

Section 27 states that when determining whether a trust service or an electronic signature is legally effective, there shall not be any consideration to the geographic location where the trust service is issued or the electronic service is created or the geographic location of the place of business of the issuer or signatory.

It continues to clearly provide that a trust service issued or an electronic signature created outside of Papua New Guinea shall have the same legal effect in Papua New Guinea as a trust service or electronic signature created within Papua New Guinea.

Disclaimer

The information in this document is provided for general informational purposes only and is the opinion of the author only. No information contained in this document should be construed as legal advice from SigniFlow or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this document should act or refrain from acting on the basis of any information included in, or accessible through, this document without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue.