Understanding eIDAS and Compliance
The reliance on electronic transactions and documentation has increased considerably Consequently, regulations that govern the trust, validity and security of these processes have become increasingly important. One paramount piece of legislation in the European Union is eIDAS – short for Electronic Identification, Authentication, and Trust Services. For compliance managers, understanding the eIDAS regulation is critical to ensuring that electronic transactions are both legally binding and secure. Introduction to eIDAS The eIDAS regulation ensured that electronic interactions across the EU member states are as secure, reliable, and trustworthy as traditional paper-based processes and that these transactions are accepted as legally binding in all member states. It provides a standardised framework for electronic identification and trust services for electronic transactions within the internal EU market. A “trust service” refers to an electronic service typically offered for a fee, which includes: – The creation, verification, and validation of electronic signatures, electronic seals, electronic time stamps, electronic registered delivery services, and related certificates. – The creation, verification, and validation of certificates for website authentication. – The preservation of electronic signatures, seals, or certificates related to these services. The 2024 revision of eIDAS that came into force in May of that year, added a couple of new Trust Services: Electronic Archiving for guaranteeing the authenticity and long-term availability of documents and data Attribute Attestation to verify credentials or attributes shared by a person These are not all the Trust Services as defined by eIDAS. More importantly, the new version of eIDAS now also provides the framework for the European Digital Identity Wallet, which will rely on the infrastructure provided by the Trust Services to create a true paperless economy. In short, eIDAS paves the way for the increased use of digital services and aims to foster trust in the online environment. It standardises the types of electronic signatures, seals, and records, making cross-border business smoother and more reliable. Explanation of the eIDAS Regulation and Its Objectives The core objectives of eIDAS are to enhance trust in electronic transactions and ensure the digital market’s smooth functioning. This is achieved by: Providing legal certainty for electronic transactions and data Implementing interoperability standards to facilitate seamless cross-border transactions in the digital single market. Creating a safe and secure technical infrastructure for digital transactions. Requirements for Qualified Electronic Signatures Under eIDAS, the highest standard of electronic signature is the Qualified Electronic Signature (QES), which requires a higher level of security and identity verification. The primary criteria include: The use of a qualified signature creation device. The involvement of a qualified trust service provider to certify the signature’s validity. The signature must be linked to the signer to make any subsequent changes to the data detectable (data integrity). Compliance Considerations Any company that needs the highest legal guarantees regarding its signature processes can use qualified electronic signatures. Due diligence and adherence to regulation are imperative for compliance managers when opting for QeS. You must ensure your electronic signature solution conforms to the eIDAS requirements while operating within the EU. Points to consider include: Understanding the requirements of eIDAS. Evaluating current practices and systems in place. Implementing solutions that meet the stringent requirements for QES. Keeping proper documentation and records to demonstrate compliance. Qualified Electronic Signature Use Cases: Business Transactions: When finalizing significant business transactions, such as signing contracts for mergers and acquisitions, joint ventures, or partnerships, a qualified electronic signature ensures the highest level of security and legal recognition. Legal Documents: For signing legal documents, such as testaments, power of attorney, or court filings, a qualified electronic signature provides a robust authentication method that can be crucial for legal validation and compliance. Government Services: When interacting with government services, such as filing taxes, submitting regulatory documents, or applying for permits and licenses, using a qualified electronic signature can streamline processes and ensure document integrity. Employment Contracts: Employers and employees can use qualified electronic signatures to sign employment contracts, non-disclosure agreements, and other HR-related documents, ensuring authenticity and reducing the risk of forgery. Healthcare Consents: In the healthcare sector, qualified electronic signatures can be used for signing patient consent forms, medical records, and insurance claims, ensuring that sensitive information is securely handled and authenticated. Real Estate Transactions: When dealing with real estate transactions, such as signing purchase agreements, mortgage documents, or rental contracts, a qualified electronic signature can provide the necessary security and legal standing. Intellectual Property Agreements: For intellectual property matters, such as patent applications, trademark registrations, or licensing agreements, a qualified electronic signature can help protect the interests of all parties involved. Financial Services: In the financial sector, qualified electronic signatures are essential for signing loan agreements, opening bank accounts, executing investment trades, and other financial instruments, ensuring compliance with stringent regulatory requirements. Corporate Resolutions: When a board of directors or corporate officers need to sign resolutions, meeting minutes, or other official documents, a qualified electronic signature guarantees authenticity and legal acceptance. Supplier and Vendor Agreements: Businesses can use qualified electronic signatures to ensure the authenticity and enforceability of agreements with suppliers and vendors, such as purchase orders, service contracts, and delivery confirmations. Conclusion eIDAS is a digital guideline defining the trust and security standards in electronic transactions. Adherence is important for compliance and building confidence in digital signatures and your organisation’s overall digital transformation plan. It is crucial to stay informed about legal requirements and technological developments to handle the challenges of digital compliance effectively. Dedicate yourself to continuous learning and stay updated on best practices to keep your organisation secure, compliant, and at the forefront of the digital landscape. Remember, eIDAS is not just a legal requirement; it’s also a driving force for making the digital economy more accessible, transparent, and secure.
The Importance of Preserving Digital Signatures to Verify Validity
In this article, we explore the need for a robust solution to preserve digital signatures. Not all digital signatures require the same level of attention, prompting us to clarify the distinctions among various types of digital signatures and what you need to ensure their validity. What Is a Digital Signature? In simple terms, a digital signature is the electronic counterpart of your handwritten signature. They are electronic signatures that use encrypted codes to verify the authenticity of a document. Its functionalities encompass user authentication, establishing the signatory’s identity, and ensuring the integrity of the information since signing. Technically, a digital signature is a code crafted using a public-key infrastructure (PKI)—a two-key asymmetric cryptosystem designed to confer heightened information confidentiality and encryption. The private and public keys form the foundation of this secure data management. The Importance of Digital Signatures Validating the digital signature’s authenticity is equally important. Digital signatures must be verified to ensure that the intended signer created them and that the document has not been tampered with since the signature was applied. Digital signature validation can be accomplished using digital signature software tools and trusted third-party verification services. There exist three primary types of digital signatures: Simple: Requires no identity verification from the signer (similar to what you encounter with delivery services). Advanced: Issued by certification authorities, demanding identity verification from the signer. Qualified Electronic Signatures (QeS): Ideal for high-risk environments where a security failure could have severe consequences. Note: In the European Union, the term used is Electronic Signature. What do you need to verify a digital signature? Companies use several methods to authenticate signers. One common method is to check the email address associated with the signer’s digital signature. This is done by sending a verification email to the signer’s email address and asking them to confirm their identity. Another method is to require the signer to provide a government-issued ID or other forms of identification. Some companies may also use more advanced methods such as biometric authentication (using facial recognition or fingerprints) or multi-factor authentication (requiring the signer to provide both a password and a code sent to their phone). By using these more advanced methods, companies can provide an additional layer of security and protect themselves from fraud and forgery. Legal and Compliance Requirements In addition to the importance of authenticating signers for security reasons, there may also be legal and compliance requirements that companies must adhere to. For example, in the EU, digital signatures must comply with the EU eIDAS regulation, which requires qualified electronic signatures to be verified using a secure digital certificate. This ensures that the signature is legally binding and admissible as evidence in court. Choosing an eSignature Solution If you’re considering using digital signatures in your business, choosing an eSignature solution that provides ample authentication options is essential. Look for a solution that offers multi-factor authentication, ID verification, and other advanced security features. Additionally, ensure the solution complies with your jurisdiction’s legal or compliance requirements. Challenges in Validating and Preserving Digital Signatures Governments, businesses, and individuals grapple with preserving various documents, including letters, transaction records, bills, and contracts, each with its stipulated retention period. These documents serve as critical evidence to establish rights and can be pivotal in resolving disputes. However, preserving digital signatures and documents presents challenges in general. Due to rapid technological advancements, traditional storage techniques or standard Document Management Systems fail to ensure reliability beyond a decade. Main Problems With Digital Signatures include: Time-Limited Verification: Basic digital signatures are valid only for the certificate’s limited lifespan, typically one or two years. Insufficient for business documents requiring verifiability over several years. Expired Digital Certificates: Once a signer’s digital certificate expires, the signed document cannot be validated and is deemed untrustworthy. Technological Progress: Digital signatures are technology-dependent, so they will always evolve rapidly. Failure to adapt risks rendering them obsolete. Verification Based on Signing Time: Verification should be rooted in when the document was signed, not the current time. The signature remains valid even if the certificate expires or is revoked during verification.