How to ensure compliance with e-signatures

As businesses navigate the landscape of digital transformation, they are adopting innovative solutions, such as electronic signatures (e-signatures). However, as they transition from traditional signatures to e-signatures, the crucial aspect of ensuring compliance with regulatory standards becomes a critical consideration. Let’s make sure you have all the necessary information to ensure compliance in your e-signature processes.

Understanding compliance challenges in the digital age

The integration of e-signatures presents numerous benefits, from time efficiency to reducing environmental impact. But, shifting from traditional to electronic signatures also means that you now have to navigate a complex web of regulations to ensure the legality and validity of e-signed documents. Key concerns include data security, consent, attribution, and adherence to industry-specific regulations.

Compliance across continents and industries

E-signatures are governed by a multitude of legal acts and regulations worldwide, such as:

• UETA and the ESIGN Act Sec 106 in the US
• PIPEDA in Canada
• eIDAS in the European Union
• The Electronic Transactions Act 1999 in Australia
• The Electronic Communications Act 2000 in the UK

When handling e-signatures from different regions with different regulations you need to be aware of the varying legal requirements, acceptance and recognition of electronic signatures in each jurisdiction, ensuring compliance with local laws.

It’s also important to understand the industry-specific regulations. Each sector, from finance to healthcare and legal, operates under distinct rules and standards. Failure to align e-signature solutions with these regulations can have serious consequences.

In finance, transactional integrity standards such as eIDAS and the ESIGN Act are paramount. Healthcare, governed by HIPAA, prioritizes patient data security. Legal professionals, needing court-admissible e-signatures, emphasize attribution and integrity. Knowing and applying the relevant regulations ensures that organizations not only comply with the law but also maintain trust, avoid legal repercussions, and safeguard sensitive data. By doing this, you foster a secure and reliable e-signature process tailored to industry-specific needs.

Key features for assuring compliance

Here’s the 3 key features you need to look for in your e-signature software to ensure compliance: 

1. Legal validity and standards compliance

Your e-signing software should adhere to recognized e-signature standards and legal frameworks, such as the ones mentioned in the section above. Compliance with these standards ensures the legal validity and enforceability of digital signatures.

2. Secure storage and access control

Choose software that ensures that your e-signed contracts are stored securely, with access limited to authorized personnel. This feature aligns with data protection regulations and confidentiality requirements.

3. Audit trails and attribution

Your software should generate detailed logs of all activities related to the e-signing process, called audit trails. They provide a transparent record of every action taken within a document. This enhances transparency and accountability and strengthens the legal standing of e-signatures, which is essential for compliance in various jurisdictions.

E-signing with Trackado

Trackado offers a secure and compliant environment for managing contracts. With features designed to address the nuances of diverse industries, Trackado ensures that organizations can confidently navigate the regulatory landscape while enjoying the benefits of streamlined, digital processes.