The Marshall Islands is set to modernize its legal framework with the introduction of the Electronic Transactions Act 2025 as a Bill in the Nitijela (Marshall Islands Parliament). The Bill aims to facilitate and promote the use of electronic transactions, signatures, and records across public, commercial, and non-commercial sectors.
While the Marshall Islands has already embraced digital methods in specific areas under existing Acts, a comprehensive solution has been needed to cover all other transactions. This Bill will provide that clarity, unifying the digital framework for all individuals and entities.
Existing Frameworks for Electronic Signatures
Before this Bill was introduced, the use of electronic and digital signatures was already accepted in several key areas:
- DAO LLCs: The Decentralized Autonomous Organization Act, 2022, allows for cryptographic signatures on blockchain transactions and for operating agreements to be maintained in a computer-readable format on a blockchain.
- Maritime Act Filings: The Maritime Act authorises the Maritime Administrator to accept electronic and digital transmissions, copies, and signatures as equivalents to originals. Approved platforms for digital signatures include Adobe Acrobat, DocuSign, and Dropbox Sign.
- Associations Law Filings: The Digital Signature Regulations, 2024, expanded the definition of “electronically transmitted signatures” to formally include digital signatures from platforms like DocuSign for corporate filings such as articles of amendment and corporate resolutions.
Key Highlights of the Electronic Transactions Bill
This Bill, if passed into law, will broaden and solidify the legal acceptance of all forms of digital documentation and verification.
- The Bill grants legal validity and enforceability to electronic transactions, signatures, and records, making them equivalent to their paper-based counterparts.
- The Bill ensures that foreign electronic signatures issued, created, or used outside of the Marshall Islands will have legal effect within the Marshall Islands, promoting international trade and collaboration.
- A primary goal of the Bill is to boost electronic commerce and enhance the delivery of government services to citizens. Public bodies will be authorized to accept electronic filings and payments for services like permits and licenses.
- The Bill seeks to enhance public confidence and trust in the security and reliability of electronic interactions.
- The Ministry for Transport, Communications and Information Technologies (MTCIT) is designated as the competent authority responsible for administering the law once it is enacted.
Scope and Exclusions:
The Bill has a broad application, but in its current form, it would not apply to:
- Matters handled by the national judicial or legislative branches, unless they opt in.
- The creation, execution, or revocation of wills, codicils, or testamentary trusts.
- The conveyance of real property or the transfer of any interest in real property.
The Bill positions the Marshall Islands to embrace the digital age. It is not currently clear when the Bill will be passed by the Nitijela.
If you wish to obtain more information, please do not hesitate to contact Nickolas Sam, Marshall Islands Licenced Attorney by email at nickolassam@hauzen.hk.