ADGM enacted the Electronic Transactions Regulations 2021 to provide greater certainty for electronic dealings. As a result, ADGM’s regulatory framework is in line with international standards on e-commerce and electronic dealing. The objective is to confirm that electronic signatures, contracts, records and documents are legally valid as the traditional non-electronic versions.
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The need for this electronic medium was mainly because of the present digital advancement and also due to the COVID social distancing. The new Regulations are based on the United Nations Commission on International Trade Law (UNCITRAL) Model Laws on Electronic Commerce. The main principles taken into account are non-discrimination, technological neutrality and functional law equivalence of electronic documents as compared to documents in a tangible written form.
The law also provides for the electronic witnessing of documents. Witnessing can be done in real-time by observing the affixing of the signature of that person on the document or record in real-time by audio-visual electronic means.
The Regulations will not apply in certain cases such as:
- Powers of Attorney;
- Wills, codicils or testamentary trusts;
- Certain real estate transactions;
- Documents requiring Notarization
To know more please read: https://www.adgm.com/media/announcements/adgm-enacts-electronic-transactions-framework
