Fraud and Documentary Credits

Documentary credits, also known as letters of credit, have long been considered the lifeblood of international trade. These financial instruments provide a vital layer of security and trust between buyers and sellers engaged in cross-border transactions.?

However, the very features that make documentary credits so useful - their autonomy from underlying contracts and their reliance on documents rather than goods - can, on occasion, also make them vulnerable to fraudulent exploitation.?

This blog provides a summary of many court cases that have addressed this problem.

https://www.tradefinance.training/blog/articles/fraud-and-documentary-credits/