Back-to-back letters of credit (L/Cs) can be used as a sanctions evasion technique according to multiple sources who contributed to a new guide published by the Middle East and North Africa (MENA) chapter of the Global Coalition to Fight Financial Crime (GCFFC) and the MENA Financial Crime Compliance Group (MENA FCCG).

Standby L/Cs can also be misused in a money laundering scheme according to the MENA trade-based financial crime reference guide, which provides explanations of how both L/C types can be used criminally.

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