Research On Several Problems Of The Crime Of L/C Fraud

The letter of credit is a kind of means for payment that is widely used in international trade. The discovery of letter of credit promotes the development of international trade in a certain degree for it provides guarantee and facilitates for the merchants. But the letter of credit is a double-edged sword; its principle of independence and the character of transacting on list provide opportunity for crime. As the development of international trade, we use this means of payment more and more and suffer from its violation. The crime on letter of credit is international and complex and the amount of which is often huge. It violates the financial order and people's property seriously. We should perfect our law and face the challenge on internationality positively to protect the order of letter of credit and people's property .The research on the crime of fraud on letter of credit (L/C fraud) seems especially important.The crime of L/C fraud is a new accusation in criminal law of 1997.As one of the eight financial crimes of fraud, it appears at section 5,chapter 3.This article researches the constitution, cognizance and penalty of crime of L/C fraud on the basic of available achievement and provides some feasible measures for the prevention on crime of L/C fraud. This article includes 4 chapters.Chapter1: The constitution of crime of L/C fraud. The subject of this crime is natural person and unit . The object of this crime is the order of L/C trade and our country and people's property. The subjective aspect of this crime is on the purpose of illegal possession, but cheating without the purpose of illegal possession should also be punished in the future law. The objective patterns of behavior should be specific.Chapter2: The cognizance of crime of L/C fraud. Identify the setting and accomplishing of this crime. Now the pattern of consequential offence is not fit for preventing and hitting the crime of L/C fraud. It should be changed into the pattern of behavioral offence. Differentiates this crime from some similar crimes. Chapter3: The penalty of crime of L/C fraud. Some part of the penalty is unreasonable. The fine punishment should be standardized and the amount of fine on unit should be determined. Add a new qualification penalty that prevents criminals from financial occupation. Bring up the offence line of criminal to low the penalty of this crime and then cancel death penalty.Chapter4: The countermeasures against crime of L/C fraud. The prevention of L/C fraud is important. This article gives advice on countermeasures for our country, the financial institution and merchants using L/C.I hope this article would be useful for the research of theories and judicial practice on crime of L/C fraud.