Uncategorized WHERE THE PRESENTED DOCUMENTS ARE FOUND TO BE FRAUDULENT By Mr Old Man Posted on April 5, 2015 2 min read 4 0 2,530 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Artful water fountain at Ba Na Hills 25 km from my home. QUESTION Dear Mr. Old Man, in case of the documents are compiled in its content but we as a bank found that the documents are fraud and its not real, even though it’s complied. Can we refuse the documents or we just chick the discrepancy in the content of the documents and we ignore the material of the documents. Thank you Hadeel Labadi —————— ANSWER Dear Hadeel Labadi, According to Article 34 UCP 600 a bank assumes no liability or responsibility for the falsification of any documents. If the payment has been made by the time the fraud is observed, the bank would not be in position to recover the payment from the beneficiary. However, if when checking the presented documents the bank has good reasons to believe that the documents are fraudulent, it should inform the applicant of the same and urge the applicant to seek an order from the court to suspend the payment. Local laws always prevails over the UCP rules. Upon receipt to the court’s stop payment order, the bank can inform of the presenter the same. If the presenter is the bank that has negotiated the documents without being aware of any fraud at the time of negotiation, it may resist the court’s order based on Article 34 UCP 600. Regarding fraudulent documents, I ever published in LC Views an article “Recourse in case the documents are discrepant or forged”. It can also be read here https://nhducdng.wordpress.com/2010/03/12/recourse-in-case-the-documents-are-discrepant-or-forged/ Kind regards, Mr. Old Man