Study on the Credit Letter Fraud and Prevention System

In international civil and commercial trade,the letter of credit has become an important international payment and mature payment means.For the business of the letter of credit,bank credit examination is the core business process.However,the particularity of banks in credit review mechanism determines that there exist risk and vulnerabilities in the system of trade settlement-letter of credit-bank.Consequently it brings a series of legal problems which challenge the academic or judicial practice.It is necessary to deeply recognize the credit fraud and improve the relevant legal system so as to provide effective legal relief for the credit fraud.