Studies On The Fraud In Letters Of Credit

Letter of credit is a system created by English talented merchants. The reason why it has been lasting for a long time is it's "independence principle". Both the complexities of the international trade and the inherent defects in the credit transactions can lead to the increasing fraud in letter of credit. At the same time, injunctions are on the rise.The international bank community and the judiciary of different countries are always disputing on the problem of fraud in letter of credit and injunction . Now, a related law on the letter of credit has not yet come into being in china. Furthermore, the hearing practice is confusing. This condition has restricted the development of our country's international trade and the credit of our banks.Through comparative and analytical approaches, based on every country's legal practice and statute laws in the letter of credit, this article makes a comprehensive and profound study on the legal problem of the fraud in letter of credit, and argues about some remedies and protections.