Documentary credit fraud against banks: analysis of Korean cases
Purpose – This paper aims to explore the feature and mechanism of a new type of documentary credit fraud that victimizes banks’ issuing letters of credit (L/C), harming neither the importer nor the exporter and seeks to suggest possible measures to tackle it. Design/methodology/approach – This study analyzed 30 cases of documentary credit fraud against banks that were detected by the Korea Customs Service (KCS) and interviewed three key customs investigators to interpret the case reports more accurately and gain a deeper understanding into the mechanisms governing the fraud. This study draws on routine activity theory and crime pattern theory to analyze the opportunity structures of this fraud. Findings – This study found that the importer that engaged in the fraud cases had established a solid business relationship with the exporter and had established trust with the victimized banks; the banks, despite the fact that they had their own risk management systems to screen out unqualified L/C applicants, wer...
International Journal of Islamic Economics (IJIE), Vol.02 No.01, Jan-Jun 2020
International trade and the movement of goods between parties living in different countries have spread in the last century and have become one of the fundamental features of the current trade. This proliferation of international contracts, of course, has its own problems. The problems of external Islamic or conventional letters of credit affect export, since letters of credit are considered a valuable tool used in financing foreign trade operations. Therefore, the problems faced by exporters in letter of credit reflect on and impact trade in general. Thus, the fewer the credit problems are, the more active foreign trade especially export will be. But if problems are relatively large, exports will contract. This study attempts to identify the problems of external and internal letters of credit facing the Jordanian traders and Jordanian Islamic and conventional banks, and to analyze them in an organized scientific manner, then proposing the appropriate recommendations to address these problems.
Benjamin's sale of goods
The sixth edition of this classic text on Sale of Goods law has been thoroughly updated to include wide-ranging developments in both commercial and consumer law. The latest developments in this broad subject are covered, including contract law, property law, consumer protection, overseas sales, remedies, the conflict of laws and many others. Key features: A The implications of E-commerce, including formation of electronic contracts and electronic payments A Problems generated by computer software contracts A Unfair contract terms in commercial and consumer sales A European Directives protecting the consumer A The impact on overseas sales of the Contracts (Rights of Third Parties) Act 1999 A Letters of Creditand the new eUCP 500 A Online contracts and the conflict of laws