Check kiting

When the check cavalry replace at least two people in collusive interaction in order to provide liquidity systematically checks (especially crossed checks ) from which no payment obligations are based (English: Cheque kiting ).

General

Checks are given as means of payment in order to settle liabilities hereby. In any credit check law means functions are inhibited. Thus, an interest visa is valid on the check than not written (Art. 7 schg ), and a check is in sight - so on presentation - payable (Art. 28 schg ). However, if mutually checks issued only for the purpose of raising money, there is already a loan resources function.

Transactions

The parties each appoint a financial institution (the first collection agency ) to present the check to the drawee bank on the ways of collecting payment. It is the check deposit on it to gain at the expense of the first collection agency a short term loan. For this purpose he makes use of the standard bank fact that he at check deposit a credit memo immediately ( with the caveat " E. v. - Subject to input" ) gets on his insufficiently covered bank account, has over here, and the first collection agency permits. At the time of check load at the other person this has in turn received a check from the first person to get submitted and credited in her first collection agency, so that the transaction results in at least two-sided balance compensation. This second check "rides " virtually at the first; both checks are causally dependent on each other, so that the process can work. As this happens more often and thereby the account turnover progressively increase, it will remain the switched banks ultimately not hidden.

Safeguards

Among other things, to protect against check cavalry write many banks only checks for " contingent credit to " good, that is, the amount of the check is the account (interest effective as of the value date ) credited, without that must be disposed of him. The check is in the so -called " Scheckobligo ", which does not normally exceed domestic checks at eight banking days. Exceptions to this rule are sometimes made ​​by banks with checks from "safe" exhibitors such as insurance, tax offices, etc.. Also go to the various financial institutions before with different risk appetite in check transactions. In addition, no plausible account sales trends are observed.

Criminality

The fraudulent disposition of the subject check amount credited is the starting point of the check cavalry. The fraud under § 263 StGB is completed with grant of the power to dispose of the first check sum as the provisional credit by the first collection point here. Cheque cavalry can also be mitbestrafte Nachtat when only a previously acquired through fraud credit should be exploited by the submission of checks.