Brunei Electronic Signature Compliance Explanation

Are electronic signatures legal in Brunei? What laws primarily regulate electronic signatures?

Electronic signatures are legal in Brunei, and Brunei electronic signatures are primarily regulated by the Electronic Transactions Act 2001 (“ETA Act”).

What types of electronic signatures are recognized in Brunei? What are the respective requirements?

Brunei recognizes two types of electronic signatures, namely secure electronic signatures and secure digital signatures.

1. Secure Electronic Signatures

ETA defines electronic signatures as any letters, characters, numbers, or other symbols in digital form that are attached to or logically associated with an electronic record and have the intention of identifying or approving the electronic record.

All electronic signatures are valid at the time of signing if they can be verified through the implementation of a prescribed security procedure or a commercially reasonable security procedure agreed upon by the parties involved, then it meets the requirements of a secure electronic signature:

• Unique to the person using it;
• Capable of identifying that person;
• Created in a way or manner that is solely controlled by the person using the method;
• Associated with the electronic record to which it relates, and if the record is changed, the electronic signature will be invalid.

Section 18 of the ETA Act also provides that in any proceedings involving a secure electronic signature, it shall be presumed, unless evidence to the contrary is adduced, that:

• The secure electronic signature is the signature of the person to whom it relates;
• The secure electronic signature was affixed by that person for the purpose of signing or approving the electronic record.

2. Secure Digital Signatures

ETA defines “digital signature” as an electronic signature that is transformed from an electronic record using an asymmetric encryption system and a hash function, so that the person who has the initial untransformed electronic record and the signer’s public key can accurately determine the following:

• Whether the transformation was created using a private key corresponding to the signer’s public key;
• Whether the initial electronic record has been changed since the transformation.

Section 20 of ETA also provides that when any part of an electronic record is signed using a digital signature, the digital signature shall be deemed to be a secure electronic signature of that part of the record if the part of the record meets the following conditions:

• The digital signature was created during the operational period of a valid certificate and verified by referencing the public key listed in the certificate;
• The certificate is considered trustworthy because it accurately binds the public key to the individual’s identity.

In which scenarios can electronic signatures be used in Brunei?

Electronic signatures can be used in the following scenarios, but are not limited to:

• Human resources documents, such as employment contracts, benefit documents, and other new employee onboarding documents
• Business agreements between corporate entities, including procurement documents, sales agreements, and confidentiality agreements
• Consumer agreements

In which scenarios are traditional signatures commonly used in Brunei?

Traditional signatures are commonly required in the following scenarios:

• Any legal instrument or document made under any written law relating to Islamic law
• The establishment or execution of a will under any written law relating to wills
• Bills of exchange
• Deeds
• Declarations of trust
• Powers of attorney
• Any contract for the sale or other disposition of immovable property, or any interest in such property
• The transfer or assignment of any interest in immovable property
• Title documents relating to immovable property