Unlocking untapped potential of electronic records and signatures

In the digital age, the adoption of electronic records and electronic signatures presents a golden opportunity for Bangladesh to revolutionise its administrative, commercial, and societal landscapes. As the nation seeks to accelerate its development trajectory, leveraging these technologies can unlock a multitude of benefits, ranging from increased efficiency and transparency to enhanced accessibility and security.

One of the primary concerns surrounding the adoption of electronic signatures pertains to their legal validity and compliance with legal and regulatory frameworks. Fortunately, Bangladesh has taken significant strides in this regard, with the launch of Information & Communication Technology Act in 2006 (ICT Act), providing a robust legal framework for electronic signatures and digital transactions. By adhering to established standards and guidelines, businesses can leverage electronic signatures with confidence, mitigating legal risks and ensuring compliance with relevant regulations.

Traditional paper-based signing processes are not only time-consuming but also incur significant costs. Electronic signatures offer a streamlined alternative, enabling businesses to digitise workflows and eliminate the inefficiencies inherent in manual paperwork. By reducing administrative burdens and expediting document processing, electronic signatures contribute to substantial cost savings across industries, allowing businesses to allocate resources more efficiently.

The environmental impact of paper-based document processes cannot be overstated, with deforestation, carbon emissions, and waste generation contributing to ecological degradation. By transitioning to electronic signatures, businesses can significantly reduce their carbon footprint and can also embrace digital workflows aligning with global trends towards eco-friendly practices, positioning Bangladesh as a responsible steward of the environment while simultaneously driving economic growth.

We need explicit provision in ICT Act that electronic signatures will be accepted all over the country, including government entities. Reputed and experienced global organisations which have high reputation in the required technological field needs to be recognised to provide electronic signature services.

International trade activities have been paper-heavy in Bangladesh – prone to inefficiencies and errors. With the vision of a Smart Bangladesh by 2041, this is one of the areas that require to be fundamentally transformed. Our Import Policy Order (IPO) 2021-24 already allows letter of credit (LC) application form to be signed electronically, the next step toward this paperless trade journey should be promoting electronic presentation of export and import related documents. To explain the impact in quantum, for instance, presenting a full set of bill of lading electronically over sending the hardcopy via courier from any foreign country to Bangladesh can save up to two weeks in the LC or documentary collection lifecycle.

Hence, the electronic presentations will also increase competitiveness of our exporters in international marketplace. Further enabling an integrated electronic trade documents acceptance system would reduce on-ground document handling

by customs authorities and cut down port and container demurrage because of faster clearance. As part of the implementation of the country's "National Single Window" project, systems must be more integrated across relevant regulatory portals such as ASYCUDA (customs), OIMS and OEMS (central bank) so that the information flows on real time basis and there is no need for post-facto manual intervention or reporting.

In conclusion, the untapped potential of electronic records and electronic signatures holds the key to unlocking new opportunities for growth, efficiency, and innovation in Bangladesh. By embracing these technologies, the nation can leapfrog into the digital age, driving economic development, enhancing governance, and empowering its citizens in the journey towards a more prosperous and inclusive future.

Mohammad A Akher is director and head of treasury and trade solutions at Citibank NA, Bangladesh, and Najmus Sadat Jamil is lead counsel of the same bank.