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CMS Monaco: Are electronic signatures well-regulated?

by Stephan Pastor and Emeline Elbaz-Mondeux
The rise of digital technology has changed everyday business life, particularly through the trade
of goods and services on the Internet, and via online means of communication.

In 2011, the Principality adopted Law No. 1.383 the party contesting the validity of a signature
on the Digital Economy; it’s main purpose must demonstrate that it does not comply
is to acknowledge the probative force of with the standards required in Monaco. In the
electronic communication. However, this event of recourse to the simple or advanced
law was inapplicable given the absence of signature, it will be up to the party who invokes
reliable and secure electronic system at the it to provide proof that the certification system
time. To overcome this, Law No. 1.482 of 17 used meets valid criteria required by law.
December 2019 towards a digital Principality
introduced the concept of electronic signatures Increased vigilance for international operations
and services and trusted service providers. The validity of certified electronic signatures
One of the major contributions to digitizing in the Principality is not expressly recognized
the economy lies in the ability to electronically in the rest of Europe and vice versa.
sign documents and contracts adapted to trade The ‘eIDAS regulation n°910/2014’, which
transactions, in particular international trade, Emeline Elbaz-Mondeux, Counsel standardizes secure electronic transactions in
by eliminating distance and reducing delays. documents with low value, which can then no the European Union, does not apply to Monaco.
In addition, electronic signatures increase the longer be modified (pay slips, invoices, etc.). Thus, in the event of litigation brought before
security of signed documents, reduce costs a European court concerning the validity of a
related to printing, archiving and routing, and Security with variable levels certified Monegasque electronic signature,
streamline contractual relations. There are three categories of electronic those who use it must provide proof of their
signature in the Principality: simple, advanced conformity with European standards. However,
Digital identity: before signing, first you must and certified. this proof is easy to administer because the
have your papers The simple electronic signature makes it technical standards are substantially identical.
possible to prove the integrity of a document. In addition, mutual recognition of electronic
Digital identity is obtained from a trusted It is reserved for simple acts with very low signature system is under discussion and could
service provider approved by the Monaco risk because the reliability of electronic eventually lead to the introduction of legal
Agency for Digital Security (notably from identification of the signatory is limited. equivalence. In the meantime, to further secure
the Town Hall, the Police Department or, The advanced electronic signature also major electronic contracts, it is recommended
for businesses, the Business Development assumes that the identity of the signatory, who to draw up separate evidentiary agreements
Agency). then has a certified electronic certificate, must (in writing), providing for the recognition by all
Electronic signature certificates for individuals be verified during a face-to-face meeting. It is parties of the electronic signature system used
are only issued to Monegasque citizens and intended for acts of medium importance (e.g. and briefly describing it. Finally, it is important
residents. For Monegasque companies, only contracts of small value, letters). to note that an electronically-signed document
their expressly authorized legal representative The certified signature is issued by a qualified retains its value only as long as it remains in
may make the request to the Department of trusted Monegasque service provider which digital format. Once printed, it will lose all its
Economic Expansion. guarantees the highest level of security and security guarantees.
After verifying identity, the trusted service reliability. It is based on obtaining an electronic
provider issues an electronic certificate in the certificate delivered in person after verifying the
form of a PIN code, allowing access to the identity of the signatory, as described above.
online services concerned via the MConnect This certificate is encrypted. The certified
application. This certificate is issued for a electronic signature makes it possible to attach
period of 3 years and costs €120, not subject the electronic signature to the signatory, to
to VAT. register their consent and to guarantee the
Businesses also have the option of obtaining integrity of the entire document, which is then
an electronic stamp issued by the Business considered as a whole, without the need to
Development Agency, which does not however initial each page.
have signature value. The certified Monegasque electronic signature © Depositphotos/klyaksun
It is an electronic stamp which guarantees the also enable the reversal of the burden of proof
content, date and origin of simple and repetitive in the event of litigation before Monaco courts:

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