**Glossary of commonly used terms**

**Fraud**: The term "Fraud" evolved from the Latin word "fraus," which refers to "deception, false or wrongful acts which deceive people." This term, in essence, commonly includes activities such as theft, corruption, conspiracy, money laundering and others. It also includes all acts or omissions, which involve a breach of a legal or equitable duty or by taking advantage of another.

**Fraud in letters of credit**: A prohibitive activity in which either importer or exporter violate their obligations under a sale of goods contract, in order to obtain a financial benefit by manipulating the loopholes of the letters of credit mechanism, thereby resulting in financial loss to either exporter or importer.

**Letter of credit**: A commitment given by the bank to pay the seller (beneficiary) upon the timely presentation by the latter of documents conforming to the terms and conditions of the credit.

**Applicant**: The buyer of the goods or services supplied by the seller, who requests the bank to open a letter of credit per as his instructions.

**Issuing bank**: The bank that issues a letter of credit at the request of an applicant or its own behalf, sometimes it is known as the "issuer."

**Confirming bank**: The bank that is under a duty of examining the presented documents, and decide to honor the credit, if the documents are complaint.

**Advising bank**: The bank that is usually provide an advice of the letter of credit that is sent by the issuing bank.

**Beneficiary**: A party under letter of credit, whose the credit is opened for his favor. This party receives the stipulated amount under the credit.

**Injunction**: A judicial order restraining a person from beginning or continuing an action threatening or invading the legal right of another, or compelling a person to carry out a certain act.
