Fraud against bank guarantees

A bank guarantee is one of the most effective bank documents without which it is not possible to fulfill the obligations of the parties or the lack of it makes the parties face risks. The most important characteristic of these documents is their independence from the basic contract which enables the beneficiary to have a definite and immediate payment from a competent guarantor in his country. The international exception to the aforementioned principle is fraud, which can prevent the claim and payment of the guarantee to its beneficiary. The question raised is what is the approach of international regulations regarding the issue of fraud? and what measures has the convention of independent guarantees and guaranteed letters of credit taken in this case? The rules and regulations of the International Chamber of Commerce have adopted a silent or near-silent approach on the issue of fraud. However, the aforementioned convention is the only document that has established regulations regarding the issue of fraud, which provides useful guidelines to the courts in this regard.