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Credit risk prevention

Sources of information：未知Release time:2017-02-24 11:52　Reading times：次I would like to comment

Credit is due to possibility of cheating exists in foreign trade. In international trade, buyers and sellers trust each other, the buyer if payment in advance, fearing that not complying with the provisions of the contract the seller shipped, not even shipped if seller shipping or shipping documents submitted, also worried about thebuyer does not pay. Therefore, guarantor of the two banks doing business between the two sides, took the collection to pay bills, bank credit in place of commercialcredit. Which tool is used by the bank letter of credit.

As a financing, letter of credit does not in itself eliminate fraud in international trade of all kinds of causes. The use of letter of credit, is always accompanied by a variety of fraud at the same time, understanding characteristics of operation of letter of credit itself, is a prerequisite to preventing fraud.

Letter of credit's main parties are: (1), the applicant, in fact, is the buyer, importer,the payer. (2), the issuing bank, the payment lines are the buyer's Bank. (3), notice that the seller's Bank, for single rope Exchange Bank. (4) the beneficiary, where theseller, payee, exporters.

A, forms of fraud on letter of credit

(A), according to the composition of the fraud:

1, the applicant fraud

Applicant fraud is fraud person applicant (purchaser) role, with fake fake letters of credit, or "soft clauses" irrevocable letter of credit fraud inform the Bank and the beneficiary of the letter of credit fraud. This kind of scam is deceptive, the exporter,the beneficiary and the Bank believe the legal status of the applicant.

Fraud by fraud on letter of credit letter of credit in favor of counterfeiting goods. If the prescribed warranty, performance payments in advance of the beneficiary, these advances are fraud.

Fraud through the "soft clauses" credit fraud is also a beneficiary of the goods as well as advance payment. But the "soft clauses" fraud means to achieve these aims, not by the letter of credit itself false, relying instead on its danger lies in the waythe entry into force of provisions. Direct consequence of these provisions is the beneficiary will not be shipped, you cannot use the credit, because a single document does not match or does not match the signature by the issuing bank refusal and so on. When the beneficiaries when they travel to these troubles, goods or payment in advance has been shot, out of control. This is "soft clauses" fraud counterfeitfraud better place.

In such cases the proportion of credit fraud is large, its true identity fraud, some from abroad, some from domestic, there is collusion.

2, the applicant with the issuing bank fraud

Applicant fraud is fraud with the issuing bank to the identity of the applicant, with the collusion of the issuing bank, create terms of obstacles, inform the Bank and the beneficiary of fraud or collusion of the applicant and the person in charge of theissuing bank, to fake contract swindle of fraud on letter of credit under the creditof the issuing bank.

Because of the involvement of the issuing bank, notify the Bank and the beneficiaryof the other party's legal status is unshakeable. Therefore, without involvement of the issuing of letter of credit fraud, more counterfeit fraud, and with the involvement of the issuing bank fraud, often characterized by "soft clauses" fraud.

3, the beneficiary fraud

Fraud is fraud by the beneficiary of the beneficiary or beneficiary status, use of theletter of credit in the Bank only lists, not the characteristics of the goods, using forged or fake, fraud, notification of the issuing bank, the applicant's letter of credit fraud. Fraud fraud to falsification of documents under the letter of credit payment. And the first scam, in this type of fraud in the credit fraud is a kind of high.

4, the applicant partnership with beneficiary fraud

Applicants with the collusion of the scam is that the applicant and the beneficiary of the beneficiary, with no real background of trade credit, fraud bank fraud. This scam to defraud people playing at the Foundation of trade buyers and sellers, and according to the characteristics of the letter of credit, letter of credit does not depend on sales contracts, Bank examination only when letters of credit and trade separate from writing to certification on the basis. Applicants and beneficiaries in collusion with "empty" purpose of fraud on letter of credit advising, often advising bankpackaged loans fraudulently. To not really exist by reason, bank loans cannot be cheated by the normal procedure.

(Ii), by means of fraud:

1, counterfeit fraud on letter of credit

Fake letters of credit are the prerequisites for lack of an effective credit and show their own false letters of credit. With this kind of letter of credit fraud, fraud meansis more a parody of a. Identifier of the fake letters of credit are: (1), l/no test. (2), the fax number is not standard. (3), open the letter of credit did not close at telex number at the beginning, no receipt at the end. (4), spelling errors or irregularities.(5), the issuing bank does not exist. (6), under the famous bank cards. (7), and I have set up a printing delay, but use a third Bank cipher. (8), non-essential clauses.(9), credit terms contents of contradictions.

2, the "soft clauses" fraud on letter of credit

The so-called soft clause in letter of credit, also known as "trap" credit refers to the credit issuer terminate the payment initiative. Is actually a form of revocable letters of credit. This initiative is achieved through "soft" provision embodied. The "softclauses" are:

(1), the establishment of shipping companies, shipping, shipment date, destination,departure port, inspection and other necessary for the issuer in the form of amendment notice to the beneficiary.

(2), provides quality certificate shall be issued by the issuer, or by the issuing bankto verify or consistent with the issuing bank archive mirror-like, or designated by the issuer certificate.

(3), provides conflicting terms, place the beneficiary in a passive position.

(4), open a credit suspended in their operation.

3, forged documents for letter of credit fraud

This fraud is the beneficiary in the case of goods do not exist, and to forging documents forcing the issuing bank documents consistent and unconditional payment in form of letter of credit fraud. As a written promise of payment, credit line on condition that documents alone. Consistent with the letter of credit document is provided as long as the beneficiaries, the issuing bank should bear the payment responsibility. In other words, bank payment only, not responsible for the goods. This is fraud on letter of credit depends on the main conditions of the forged documents.

Second, business prevention of fraud on letter of credit

Previous years letter of credit fraud, fraud on letter of credit the amount involved is large, directly affect the normal operation of import and export enterprise in China, many financial mess because of being cheated, and never recovered, bank losses are greater. Therefore, effective protection against fraud, to engage in import and export business of international business companies and banks, are very important.

In the case of fraud on letter of credit, most of the fraud is based on domestic Bank and beneficiary of foreign trade enterprises to be cheated of counterfeit fraud on letter of credit and "soft clauses" fraud. Therefore, notice how the Bank and thebeneficiary jointly guard against being deceived, is the focus of business prevention.

Characteristics of credit fraud, notify the Bank and the beneficiary should take precautions against from the following aspects:

1, exporters if you choose as a means of payment in the credit, first customer credit investigation, careful selection of trading partners, not to intermediaries of credit(credit, friends, relations, administrative relationship) in place of trade credit.

2, as the beneficiary of the credit, exporter members shall require the buyer to open a letter of credit as soon as possible, and leave plenty of time for necessary changes. In other words, if received by the beneficiary to near the time of shipmentonly to find letters of credit not in accordance with the contract of sale, or with provisions that cannot be fulfilled, and not enough time to amend the relevant provisions, in violation of credit or responsibilities under the contract of sale must fall onbeneficiaries, the beneficiaries to take unnecessary risks.

3, due to the advising bank has the responsibility to review evidence that authenticity, so when after notifying the Bank receives the credit or amendment should carefully check the test key. Upon receipt of the letter l, you should carefully check the seal. As beneficiary of export enterprises should cooperate closely with the Bank, inthe bet before the nuclear operator and never relinquished control of the goods,not on board ship.

4, after receipt of the letter of credit, a rigorous examination of its contents and contract compliance. Credit consequences of content not in accordance with the contract of sale is that beneficiaries can only comply with the contract of sale have to violate strict terms stipulated in the credit, or can only comply with the credit, and having to breach of contract terms. The result, either by banks declined, without payment or by the issuer to claims for breach of contract. Banks and enterprises cooperation is an important way to prevent fraud.

5, if you credit with prepaid commissions, strike gold, or bulk cargo shipping conditions, should be rejected. In case of advance payment had been deceived.

6, review of the effectiveness of the letter of credit itself. In a sense, the "soft clauses" is also a does not have the validity of the letter of credit letter of credit. To review the effectiveness of the credit itself, is the prevention of counterfeit fraud on letter of credit, but also the "soft clauses" fraud prevention. Review in this regard include, review the issuing bank credit reliability review whether "irrevocable" (irrevocable) words, which are irrevocable letter of credit; examine the buyer and terms of issuing bank guarantees payment of the review referred to in this article "soft clauses", review of the appropriateness of the validity.

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