Because the legitimacy of the digital signature infrastructure largely depends on the procedures established by the CA, most digital signature statutes define the obligations of the sender, relying party, and CA with respect to the use of digital signatures and certificates and set standards of conduct or CAs. In addition, most digital signature statutes establish a licensing procedure for CAs. As an aside, on January 12 of this year, the Office of the Comptroller of the Currency authorized Zions First National Bank to establish an operating subsidiary that would serve as a certification authority. The OCC determined that acting as a CA is the functional equivalent of notary services long offered by banks and a natural outgrowth of bank identification and verification skills. The operating subsidiary will be licensed and operated in accordance with the Utah digital signature statute. The Utah law, which served as a model for many of the other states’ digital signature laws, insulates certification authorities, that properly perform their functions, from liability. Of course, the ultimate purpose of any digital and electronic signature statute is to provide for the validity of electronic signatures. All of the state statutes provide that use of an electronic or, if appropriate, digital signature on an electronic record will be treated in the same manner as a handwritten signature on paper. Most of the digital signature statutes, however, also include a legal presumption that the person whose name is associated with a digital signature is in fact the person who signed the document.

This is evident with the significant three-fold increase in contributions of the product marketed through bancatakaful in 2005 which accounted for 20.4% of total contributions. Bancatakaful has contributed considerably to the increased penetration in the family takaful business, especially for single contribution takaful plans. We envisage significant inroads in the penetration rate of bancatakaful in future years in line with the positive trend shown by the conventional counterparts, where the bancassurance captured 45.3% of the new life insurance business premiums generated in 2005. Through efficient cost structures of bancatakaful and with the entry of joint-venture takaful operators involving banks and savings institution with extensive nationwide branch network, the takaful industry should maximize the potential of this alternative distribution channel. Finally, on the global front, Islamic finance has made significant inroads and has achieved growing global recognition. Another significant milestone in the progress of Islamic banking and finance as recently announced by Bank Negara Malaysia is the initiative to enhance the position of Malaysia as an international Islamic financial centre (MIFC). With the vibrant domestic Islamic financial industry that has become an integral component of the financial system, Malaysia is now well positioned to be an international centre of origination and issuance of Islamic financial instruments, fund and wealth management, Islamic financial activities in international currencies and takaful and retakaful businesses. As at year 2005, the total gross contributions from takaful business outside Malaysia recorded an insignificant proportion of the total contributions of the industry.