International Trade Fraud
International trade fraud is an incident of international commercial transactions. It affects traders through loss of cargo, increased insurance premiums and shipping expenses, as well as the cost to final consumers. The types of fraud vary from documentary fraud; charter-party fraud; fraudulent insurance claims; scuttling; diversion of cargo; counterfeiting, and money laundering.
A notable case in international trade fraud is the Salem Case. This case involved the scuttling of a ship carrying more than 200,000 tons of crude oil. Millions of pounds were lost by the cargo owners, being the highest value conspicuously lost in history. Although US$56 million was claimed from rights assigned under the insured cargo, little has been recovered from the fraud. The case alerted governments and multinational corporations of the inherent risks involved in international operations. It further highlights that complications of international jurisdiction make it difficult to successfully prosecute fraudsters.
Read more about this topic: International Commercial Law
Famous quotes containing the words trade and/or fraud:
“My own experience has been that the tools I need for my trade are paper, tobacco, food, and a little whisky.”
—William Faulkner (1897–1962)
“There exists in a great part of the Northern people a gloomy diffidence in the moral character of the government. On the broaching of this question, as general expression of despondency, of disbelief that any good will accrue from a remonstrance on an act of fraud and robbery, appeared in those men to whom we naturally turn for aid and counsel. Will the American government steal? Will it lie? Will it kill?—We ask triumphantly.”
—Ralph Waldo Emerson (1803–1882)