Bermuda
- The Electronic Transactions Act 1999
The
Act reflects international standards, including
the UNCITRAL Model Law on electronic commerce,
working papers of the European Parliament and
Council in respect of electronic signatures,
the European Union's safe harbour principles
for data protection, and “best practice”
legislation found in other jurisdictions.
The
Act, drafted by international law firm Linklaters
& Payne, lays a foundation for the conduct
of electronic transactions on a technology-neutral
basis that is sufficiently flexible to embrace
new technological developments and that contemplates
a high degree of self-regulation.
It
lays down a basis for electronic documents and
signatures to replace their physical equivalents
in all applicable legislation.
The
Act sets out to promote public confidence in
the validity, integrity, and reliability of
electronic transactions, and promotes the development
of the legal and business infrastructure necessary
to implement electronic transactions securely.
The
Act creates an ongoing “Electronic Commerce
Advisory Board” of business people that
will continue to advise Government to ensure
that the island’s regulation encourages
the growth of digital business through free
market forces.
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Bermuda - The Code of Conduct, May 2000
Bermuda
adopts a “know your customer” approach
to business – an important standard amongst
international regulators. The island’s
e-commerce legislation emphasizes self-regulation
by local providers under a Code of Conduct to
encourage the growth of digital business without
excessive red tape.
The
code therefore is designed to encourage business
to observe integrity, protect personal data,
avoid abusive usage, advertise truthfully, deal
fairly and openly with customers, and settle
complaints and disputes quickly.
In
essence, the legislation does not regulate customers
directly, but tasks ISPs and e-commerce service
providers, (such as transaction gateways) to
ensure that their customers adhere to the Code.
The Ministry of Telecommunications and E-Commerce
is the final authority regarding enforcement
of the Code.
For
example, the Code outlines remedial steps if
a customer infringes on copyright law, and requires
the local providers to report criminal or prohibited
acts under Bermuda law. Furthermore, Bermuda-based
companies are not allowed to engage in online
gaming or adult-content services.
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Bermuda - The Government's E-Commerce Involvements
The
Government has directly supported the establishment
of e-commerce hosting centres by the two long-distance
telecommunication companies which operate on
the island, Cable and Wireless, and TeleBermuda
International.
However,
in 2000 the Bermuda Telecommunications Minister
announced a new regime for Internet telephony
and broad-band services which seems to favour
the local firms: the two major telecoms companies
would be permitted to offer Internet services
to business (previously they were restricted
to offering their services internationally),
while the local firms would have access to long-distance
networks to offer various types of Internet
service, probably including VOIP (Voice Over
Internet Protocol).
The
Government has also involved itself in the formation
of a Bermuda Commercial Digital Certification
Authority, which was founded by blue chip international
finance and e-commerce company, Quo Vadis Ltd
in September 2000. The technology Quo Vadis
employs is Public Key Infrastructure (PKI),
a solution which addresses the security, authentication,
and non-repudiation issues associated with e-commerce.
PKI operates through the provision of digital
certificates that act as 'digital passports'
and uniquely identify the parties to any on-line
transaction. Thus offering a secure standard
for offshore e-commerce transactions, whether
originating in Bermuda or elsewhere. Such an
independent certificate authority will further
enhance Bermuda's e-commerce edge over other
jursdictions.
The
Certification Service Providers (Relevant Criteria
and Security Guidelines) Regulations 2002 follow
the Electronic Transactions Act (ETA) 1999,
and deal with the formation of electronic contracts
and the validity of digital signatures. The
voluntary CSP scheme allows certificate authorities
to apply for Government recognition under the
ETA.
The
government has also created a Bermuda Commercial
Digital Certification Authority.
The Telecommunications Ministry makes a charge
of BMD10,000 per application for a CSP approval,
in order to cover the costs of expert investigation
of each applicant.
In
2004, the Bermudian government continued its
support for the jurisdiction’s technology capabilities
at an international e-commerce seminar in London.
Jonathan Koshar, general manager of AT&T Wireless
in Bermuda, said: “AT&T Wireless has been able
to establish itself and make great progress
in a relatively short space of time thanks to
the supportive government and business environment
in Bermuda.”
“We
are among the first three countries in the world
to have EDGE data technology, giving the Bermudian
business community access to state of the art
wireless communications products and services,”
noted Mr Koshar.
In
September 2004 the Bermudian government aired
a television commercial in a bid to boost the
number of firms in the jurisdiction electronically
filing payroll taxes under the government’s
E-Tax Initiative. Since the launch of the E-Tax
Initiative in June 2002, Finance Minister Paula
Cox reported that a little under 500 firms had
opted to pay their payroll taxes online, generating
some 1,811 returns and BMD104 million in revenue
out of a total payroll revenue of approximately
BMD200 million.
Cox
said the 30 second long adverts would help spell
out the simplicity and overall benefits of the
E-Tax system and convince a hitherto sceptical
business audience. “Now we’re about to launch,
I think you’ll see that, with publicity and
also with the advantages being made quite clear,
we should see a steady peak and rise,” commented
Mrs Cox. “There’s a certain element that are
resistant to using computers. We have to demonstrate
that it’s easy and will become ‘one-stop shopping’,”
she observed.
Following
the campaign, there was a significant increase
in the number of businesses using the government’s
electronic tax filing system. Tax Commissioner
Heather Jacobs Matthews reported that the number
of firms filing online had risen to 16%, or
884 businesses, up from 9% previously. "If 884
people are filing, that is 884 cheques we don't
have to worry about, 884 returns we don't have
to file away, 884 receipts we don't have to
put into the mail. That is more than a 100%
increase of the people who were filing before,”
she explained.
In
October 2004, certification service provider
Quo Vadis announced that it had been retained
by the government of Bermuda to provide digital
identity services as part of its ongoing e-Government
Portal Project. Commenting on the decision,
Minister for Telecommunications and E-Commerce,
the Hon. Michael Scott stated: “Reflecting the
sophistication of the Bermuda marketplace, Government
is committed to leveraging the Internet to better
serve our users, whether they are local residents
seeking to register a vehicle or multinational
companies making a regulatory filing.”
He continued: “We have selected Quo Vadis to
help provide the identity cornerstone for the
next phase of the Portal, ensuring that Government
can properly identify users and protect privacy,
as well as foster the integrity and accountability
of our web services offerings.”
Under the first phase of the e-government project,
Bermuda introduced a central portal uniting
the informational websites of more than sixty
government agencies. Using software from Plumtree,
the portal provides a flexible central platform
for government’s planned rollout of online transactions.
Under
the agreement with Bermuda, Quo Vadis operates
a digital certificate authority for the government
under the provisions of applicable local laws
and regulation. Digital certificates are a form
of non-forgeable electronic ID that may be used
to identify online users and resources, to create
legally binding electronic signatures, and to
encrypt data for privacy.
“To
ensure its competitiveness as a jurisdiction,
Bermuda has consistently been a leader in formulating
legislation and updating infrastructure to make
e-commerce possible,” observed Roman Brunner,
chief executive of the Quo Vadis Group.
“With
its rigorous approach to security and identity
management in its e-government planning and
Portal, the Bermuda Government is reinforcing
the island’s reputation for responsibility and
trust,” he added.
Promising
findings have come from a report which studied
the level to which e-commerce in Bermuda has
penetrated the business sector and the community
at large, which was released by the government
on Thursday.
In
2007, the Department of E-Commerce commissioned
a local research company to establish a benchmark
view of Bermuda residents’ and businesses’
competencies and attitudes towards Information
Communications Technology (ICT) over a three-year
period.
“Given
the important role that technology plays and
its increasing socio-economic impact both locally
and globally, it is vital that a current and
comprehensive assessment of the adoption of
ICT in Bermuda is undertaken,” said Terry
Lister, Minister of Telecommunications and E-Commerce.
According
to the study, published in 2008, the overall
adoption rate of telecommunication devices continues
to be high. Similar results were shown in the
study for 2009.
On
the corporate side, nearly all Bermudan companies
surveyed have computers. All firms have internet
access with a high-speed connection, however
T1 lines or greater accounted for just 24%.
58% of employees are considered to be competent
or skilled at using computers, up 5% from 2007.
Corporate cell phone and mobile device ownership
continued to show an increase from 75% in 2007,
to 85% in 2008 and 87% in 2009. Companies tended
to own more mobile devices in 2009, from 63%
in 2008 to 78%.
90%
of Bermudan households own a computer. The vast
majority (89%) of households access the internet,
and similar to the last two year’s results,
out of those that have internet access 85% have
a high speed internet connection (DSL, Cable
or wireless). In 2009, 94% of Bermudan households
owned a cell phone and in 2010, residents owned
a larger proportion of mobile devices such as
BlackBerries, increasing from 16% in 2007 to
32% in 2008 and 34% in 2009.
Regarding
residents’ online habits, consistent with
2008, the most regularly used online activities
include using search engines, looking for travel
information, and researching products or services
and online shopping.
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