Wring the last decade documentary maritime fraud has
caused considerable financial loss. The internationality of the
crime and the difficulties experienced in the investigation and
prosecution of offenders has caused serious concern both
nationally and internationally.
The aim of this research was to examine the system of
international trade in terms of flow between institutions,
and to develop a model of the system to identify areas of
system failures in terms of actual or potential frauds.
A database consisting of 101 fraud cases was compiled. Detailed
examination of the cases identified features common to different
classes of fraud. Systems approach was used to investigate the
system with particular reference to Bills of Lading and method
of payment under documentary credits. Conceptual mcdels of the
three main contractual sub-systems i. e. carriage, insurance and
payment, and of the total system were developed. The latter was
used in conjunction with the database to pin-point the weak
links both within the system and its imiediate envirormLent.
Using a rwlti-disciplinary international Panel of Experts the
Delphi technique, appropriately modified, was employed to test
the hypothesised weak links, determine feasibility of
implementing the recoamndations and seek information to assist
in introducing measures to combat fraud.
The analysis supports the hypothesised weak links identified in
the environment and reccmuendations to strengthen them. Factors
creating an environment for fraud are identified, along with
reasons for not reporting the crime. Information required to
combat fraud is identified. Prior to payment under documentary
credits banks should carry out factual checks. The Bill of
Lading is not a weak link but the people handling the document
are unaware of its importance.
Establishmnt of a Conmrcial Crim Research Unit specialising
in international trade is recamrended, as is the development of
an educational prograrmTo to increase conmercial awareness