Abstract:
The process of opening a letter of credit involves prior legal actions and unfolds in three stages, ultimately leading to its issuance. The first stage establishes the basic contract between the buyer and seller, which serves as the basis for the letter of credit application. There is a potential for default at each stage. However, only at the third stage, after the letter of credit is opened in favor of the beneficiary (the seller), can the payment be secured. Since the framework for opening a letter of credit is contractual, the bank also receives necessary guarantees and collateral for issuing it. If violations occur during this process, a non-criminal response is generally expected. However, due to a lack of understanding of the process and the nature of letters of credit, as well as the absence of specific regulations, opening a letter of credit contrary to established norms and the obligations of involved parties can sometimes lead to criminal charges and the initiation of a criminal case.

This practice significantly undermines fundamental legal principles such as the legality of crime and punishment, the presumption of innocence, and the proportionality of crime and punishment. Therefore, the lack of criminalization in this area, the inconsistency of existing regulations, and populist approaches have resulted in scattered and heterogeneous judicial decisions.

Keywords: Judicial Criminal Policy, Crime, Letter of Credit, Punishment, Sham Contract