Letter of Credit Fraud(信用证欺诈).pdf

Journal of Financia l Crime — Vol . 7 No . 3 — Banking Fraud BRIEFING BANKING FRAUD Letter of Credit Fraud B. V. Kumar In spite o f built-in checks and du e diligence pro - manufacturing units at GID C Industrial Estate, cedures adopted and implemente d by governmenta l Umbergaon , Gujarat , and are engaged in th e manu - agencies, financial institution s and insurance com - facture of lead, lead-based alloys and tin . Th e other panies , nothin g can prevent human ingenuity from companies in the group , namely , Nariman Point breaching those barriers in order to commit finan- Chemical Industries Ltd (NPCI ) and Hindustan cial fraud . A recent case detected by th e Directorat e Industrial Chemical s Ltd (HIC) , hav e their manu - General of Revenu e Intelligence (DRI) , India , facturing units in Surat , Gujarat and arc engaged having international ramifications , is a pointer t o in th e manufactur e o f borax and boric acid and many such frauds that might have been committe d hydrogen peroxide , respectively . These group com - and hav e gon e undetected for many years . panies opened a large number of letters of credit Th e DRI , Bombay Zona l Unit , received specific (around 500) an d large amount s o f foreign exchang e intelligence in about September 1998 that M/ s had been remitted against