Bahrains Benefit wins licence to execute e-signature and trust services

MANAMA: The Telecommunications Regulatory Authority (TRA) has issued the first licence to execute e-signature and trust services to Benefit, Bahrain’s sole operator of electronic financial transactions.

Trust and e-signature services are governed by the provisions of Articles (20) and (21) of the Electronic Communications and Transactions Law.

The services allow the signing of transactions electronically and remotely and seek to promote the use of e-signatures as a safe and reliable authentication method during electronic transactions.

TRA cybersecurity and technical affairs director Mohamed Alnoaimi said, “Through licensing trust and e-signature services, TRA seeks to keep pace with latest technologies and developments to carry out its tasks and perform its duties to achieve the strategy of the digital transformation. The increased use of ‘e-signature’ will help to enhance the efficiency of administrative work and the level of performance of government and private services in accordance with rapid technological trends.”

Mr Alnoaimi also emphasised TRA’s commitment to assessing all systems and processes on a periodic basis to ensure their contribution to fulfilling the needs of residents while preserving all parties’ rights.

Also commenting was Benefit assistant general manager for information technology Riyadh Al Maraj who said, “We are pleased that Benefit is the first in the kingdom to obtain a licence for trust services and e-signature, after passing the standards and specifications for providing the service according to the regulations issued by TRA.

“Benefit has invested in advanced technical infrastructure according to the best international practices to meet the requirements of this licence and we look forward to opening doors for many future applications,” Mr Al Maraj added.

In January 2019, Bahrain became the first in the world to enact the Model Law on Electronic Transferable Records, developed by the United Nations Commission on International Trade Law (UNCITRAL).

In strategic co-operation with the UNCITRAL secretariat, the kingdom also revised the Electronic Transactions Law with new provisions that align with the United Nations Convention on the Use of Electronic Communications in International Contracts and renamed it the Electronic Communications and Transactions Law.

The Electronic Transferable Records Law introduced electronic transferable records that are functionally equivalent to commercial documents and instruments issued on paper, such as bills of lading, bills of exchange, cheques, promissory notes and warehouse receipts.

These electronic documents allow the person who holds them to claim payment of a sum of money or delivery of certain goods, enabling the merger of the finance and logistics supply chains in a single data workflow.

Electronic Communications and Transactions Law updated the electronic transactions law to promote a wider use of electronic communications in business.

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