Research On The Fraud On The Letter Of Credit

Letter of credit is seemed as "the lifeline of international business". There are many types of fraud by letter of credit. This paper starts by general knowledge of letter of credit, then concern about basic principle and the process of its operation. Then review the development of the legislation of fraud by letter of credit. In the following part, the paper emphasizes constitutes of fraud by letter of credit and the disputed problem and the difficulty in cognizance in judicature. In this part of which, we mainly analyze material fraud behavior in impersonal side and "illegal possession intention" in subjective side. The difficulty in cognizance of judicature includes crime and non-crime of cognizance, this crime and that crime, and special forms of the crime. Finally, based on present situation of research on this question, we propose advices on legislation of the fraud by letter of credit.