Letter of Credit (L/C) is a result of bank credit involved in means of payment in international trade of goods. L/C has not only, to some extent, settled the issue of mutual mistrust between buyers and sellers but also facilitated them to gain bank financing in the process of employing it as a method of payment. Thus, L/C has promoted the development of world trade and been widely used as a major payment method in current international trade. With the increase in global trade, Letter of Credit will surely apply in a broader scope. Yet, international fraud, as a highly successful and burgeoning business, is challenging the paramount status of L/C in international trade. A large number of L/C related fraud cases with increasing frequency have undermined the confidence of buyers and sellers alike and brought tremendous damage to international trade. It is, therefore, urgently imperative to study the L/C-related fraud from a legal and commercial perspective. A good many of scholars in their academic works have already explored the issues of L/C-relatedfraud. In this connection, the aim of this essay is to discuss its causes, forms and prevention to contribute to the alleviation of its damage to our country. |