Program Name

Documentary Credits From Legal & Trading Aspects

Documentary Credit is a major player in the International Trade Finance in the world of business. It is considered to be the safest banking instrument to executing import and export transactions, provided the mechanism is understood. Fraud is always a major threat to importers and banks. It is important for parties of a credit to be aware of the investigation tools prior to establishing the credit, especially when the supplier is unknown or not the actual shipper. Conflict of interest between banks and other parties is also a threat to the business.

Program Content:

  • The International Chamber of Commerce and the Financial Investigations Bureau.
  • The relationship between sale agreements and undertakings.
  • Islamic way of trade Finance and Refinancing (Morabaha).
  • Credit facilities (Cash and non Cash).
  • Liabilities booking.
  • Parties to documentary credit transaction roles & responsibilities.
  • Country & bank limits including economical, political and war risks.
  • Types of confirmations and problems involved.
  • Facilitate ISP98 to reduce credit risk.
  • Method of advising.
  • Types of negotiations, payments and acceptance – Risks and Management.
  • Conflict of interest.
  • Letter of Indemnities under Oil LCs – Management and Risks.
  • Oil LCs & Oil financing.
  • LC refinance.
  • Bankers acceptance (Drafts): Purchase, Payments, Discounts.
  • How to recourse against payments under LCs.
  • When banks should refuse the acceptance.
  • Payment against forged documents: responsibilities and protection.
  • 18 Types of credits – Risks and Management.
  • Incoterms.
  • Documents.
  • Prevention of fraud and Money Laundering.
  • Source of help.
  • Presentation and settlement.
  • Bank-to -bank reimbursement under documentary credits.
  • Related products such as indemnity vs. guarantee.

Benefits to You and Your Organization:

  • Understand the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 500 (UCP500) and other related Publications.
  • Understand Bankers Acceptances.
  • How to avoid fraud and Money Laundering risks.
  • How banks apply charges and ways to reduce expenses.
  • Pre-fact and Post fact investigations for business protection.
  • Get familiar with the conflict of laws, applicable law and jurisdiction.


  • Lecture-discussion and real life cases studies for discussion.


  • English and / or Arabic.


  • 30 Training Hours.