August 2020

BG: Restraining Payments under Letters of Credit: Fake Trades & Forged Documents-Who Bears the Risks?

With a raft of high-profile cases revealing an alarming incidence of fictitious trades and fake BLs, banks are revisiting the old maxim that they only deal with documents and not the underlying trades. If a bank only deals with documents, can it refuse or claw back payment under a LC if documents, compliant on its face but fabricated to support a fictitious trade?

20.08 Payment under LCs
20.08 Payment under LCs. 2
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