CIRCULAR

GUIDING FOREIGN CURRENCY MANAGEMENT IN THE BUSINESS OF PRIZE-WINNING ELECTRONIC GAMES INTENDED FOR FOREIGNERS

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to Law on Credit Institutions dated June 16, 2010 and Law on amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Ordinance on Foreign Exchange dated December 13, 2005 and the Ordinance on amendment to the Ordinance on Foreign Exchange dated March 18, 2013;

Pursuant to Decree No. 121/2021/ND-CP dated July 27, 2021 of the Government on the business of prize-winning electronic games for foreigners;

Pursuant to Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government on functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At request of Director of Foreign Exchange Department;

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Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular guides foreign currency management in the business of prize-winning electronic games intended for foreigners.

Article 2. Regulated entities

1. Enterprises engaging in the business of prize-winning electronic games intended for foreigners (hereinafter referred to as “enterprises”).

2. Individuals allowed to play at venues of prize-winning electronic games intended for foreigners (hereinafter referred to as “players”).

3. Commercial banks and foreign bank branches permitted to engage in and/or provide foreign exchange services in Vietnam (hereinafter referred to as “permitted banks”).

4. Other organizations and individuals related to the business of prize-winning electronic games intended for foreigners.

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FOREIGN CURRENCY MANAGEMENT IN THE BUSINESS OF PRIZE-WINNING ELECTRONIC GAMES INTENDED FOR FOREIGNERS

Article 3. Receipt and use of winnings in foreign currency

Players shall receive and use their winnings in foreign currency as follows:

1. In case the players receive their winnings in cash, they can:

a) sell the foreign currency to permitted banks for VND; or

b) wire their winnings to foreign countries via permitted banks; or

c) be verified by permitted banks to carry their winnings abroad in accordance with Clause 1 Article 11 hereof;

d) submit their winnings to their foreign currency checking accounts opened at permitted banks.

2. In case the players receive their winnings in foreign currency via wire transfer, they can:

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b) have their winnings in foreign currency transferred from specialized foreign currency accounts of enterprises to accounts of the players opened in foreign countries.

3. The players can authorize enterprises to contact permitted banks in order to submit foreign currency, make transactions in foreign currency, and apply for confirmation of carrying foreign currency abroad in accordance with this Circular.

Article 4. Token

1. Denominations of tokens shall be in VND or a convertible foreign currency. Enterprises shall convert tokens into VND or foreign currencies. Exchange rate shall rely on exchange rate publicly posted on transaction date of the permitted banks where enterprises open their specialized foreign currency accounts. In case transaction date is not a working day, exchange rate publicly posted on the previous transaction date shall prevail.

2. Players are allowed to convert remaining tokens and won tokens into foreign currencies or VND at enterprises and perform transactions mentioned under Article 3 hereof using the converted foreign currencies.

Article 5. Scope of foreign currency expenditure, revenue, and other foreign currency-related activities of enterprises

1. Enterprises obtaining the License to perform foreign currency expenditure, revenue, and other foreign currency-related activities (hereinafter referred to as “the License”) issued by the State Bank of Vietnam (hereinafter referred to as “SBV”) are allowed to:

a) collect foreign currency in cash generated from the sale of tokens;

b) collect foreign currency in cash from prize-winning electronic game machines which collect cash directly from players;

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d) pay cash or make wire transactions in foreign currency to winning players;

dd) pay cash or make wire transactions to foreign currency checking accounts of players opened at permitted banks in Vietnam or foreign accounts of the players if the players do not run out of tokens;

e) transfer the remaining foreign currency of the players which was previously deposited in specialized foreign currency accounts of enterprises to players’ accounts in foreign countries;

g) carry out other foreign currency-related activities: open and use specialized foreign currency accounts; maintain reserves of foreign currency cash; verify winnings of players.

2. Expenditure, revenue, and implementation of other foreign currency-related activities of a bordering country shall respect the Bilateral Payment Agreement between SBV and central banks of said bordering country. Enterprises shall obtain the License issued by SBV for currencies of bordering countries within the scope under Clause 1 of this Article.

Article 6. Opening and use of specialized foreign currency accounts

An enterprise obtaining the License issued by SBV must open one specialized account for each type of foreign currency at a permitted bank to serve a venue of prize-winning electronic games, and:

1. In case of collecting foreign currency:

a) Deposit cash into their accounts in case cash revenues in foreign currency generated from the sale of tokens and prize-winning electronic game machines exceed the cash reserves in accordance with Article 8 hereof;

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c) Collect transactions made from foreign currency checking accounts of enterprises in accordance with Clause 2 Article 7 hereof in order to pay winnings and/or pay the unused foreign currency in accordance with Point a and Point b Clause 2 of this Article or serve cash withdrawal in foreign currency in accordance with Point c Clause 2 of this Article.

2. In case of making payments in foreign currency:

a) Deposit payments in players’ foreign currency checking accounts opened at permitted banks in Vietnam or players’ accounts in foreign countries if the players win or do not use all of their tokens;

b) Deposit remaining unused foreign currency which was previously transferred to specialized foreign currency accounts of the enterprise to players' foreign accounts;

c) Make cash withdrawal in foreign currency in order to maintain cash reserves in foreign currency in accordance with Clause 1 Article 8 hereof.

d) Sell foreign currency to permitted banks;

dd) Transfer to foreign currency checking accounts of enterprises in accordance with Clause 1 Article 7 hereof.

Article 7. Internal transfer of foreign currency between foreign currency checking accounts and specialized foreign currency accounts of enterprises

1. Enterprises are allowed to transfer foreign currency from specialized foreign currency accounts to foreign currency checking accounts opened at permitted banks.

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Article 8. Foreign currency cash reserves

1. Enterprises must reserve a definite amount of foreign currency in cash for business use at any venue of prize-winning electronic games (which is stated on the License) on the basis of calculated cash in foreign currency required to make payout and pay foreign currency in cash to players for unused tokens.

2. On the working day following a day on which cash revenues in foreign currency generated from the business of prize-winning electronic games exceed the cash reserves, enterprises must submit the excess to their specialized foreign currency accounts opened at permitted banks in accordance with Article 6 hereof.

Article 9. Payments via credit cards

Enterprises that also act as merchants are allowed to accept players’ credit cards to sell tokens for prize-winning electronic games. The currency received from acquiring banks by enterprises shall be VND.

Chapter III

RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS RELATED TO THE BUSINESS OF PRIZE-WINNING ELECTRONIC GAMES INTENDED FOR FOREIGNERS

Article10. Responsibilities of branches of SBV in provinces and cities

1. Guide permitted banks and local enterprises to fully comply with this Circular and relevant law provisions.

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3. Cooperate with relevant agencies, organizations, and individuals in implementing anti-money laundering measures in the business of prize-winning electronic games as per the law.

Article 11. Responsibilities of permitted banks

1. Inspect and control documents, instruments presented by players and enterprises to deposit foreign currency cash in accounts, transfer foreign currency, and confirm the foreign currency carried abroad by players using form under Appendix No. 1 attached hereto.

Confirmation of carrying foreign currency abroad is valid for only 30 days from the date of issue.

2. Keep documents and instruments relating to foreign currency-related transactions in accordance with this Circular and relevant law provisions.

3. Promptly discover violations of this Circular committed by enterprises or players and report to SBV branches of provinces and cities where the venues of prize-winning electronic games intended for foreigners of enterprises are located.

4. Adequately comply with this Circular, regulations on anti-money laundering, and relevant law provisions.

5. Sell foreign currency to enterprises in accordance with Clause 7 Article 12 hereof.

Article 12. Rights and responsibilities of enterprises

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2. Verify payout, winnings, exchange tokens for players using form under Appendix No. 2 attached hereto, provide relevant documents and instruments, assume legal responsibilities for the winnings, payout, and money converted from unused tokens which serve as the basis for permitted banks to confirm the carrying and transfer of foreign currency abroad, deposit foreign currency in accounts of players in accordance with Article 3 hereof.

Confirmation of payout, winnings, exchange of tokens for players is for a single use and valid for only 30 days from the date of issue.

3. Fully present documents and instruments to permitted banks when depositing cash foreign currency to specialized foreign currency accounts and when selling, transferring foreign currency.

4. Record, archive, and keep documents as per relevant law provisions.

5. Develop Regulations on management and internal control for foreign currency revenues and expenditure in the business of prize-winning electronic games intended for foreigners which must contain the following: procedures for making payment and expenses in foreign currency; procedures for controlling sources of foreign currency revenues and expenditure in a manner that conforms to regulations on anti-money laundering and guarantees safety for cash collected during business process; functions, tasks, and powers of relevant departments, individuals.

6. Strictly comply with the License, this Circular, regulations on anti-money laundering, and relevant law provisions.

7. Purchase foreign currency from permitted banks where enterprises open their specialized foreign currency accounts in case cash reserves and foreign currency balance in their specialized foreign currency accounts and foreign currency checking accounts are insufficient to pay or allow cash withdrawal of foreign currency for business purposes within the scope of foreign currency expenditure, collection and other foreign currency-related activities of enterprises under Article 5 hereof after presenting documents and instruments securing the legitimacy of the transactions.

Article 13. Responsibilities of players

Players are responsible for strictly complying with this Circular and relevant law provisions.

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ORGANIZING IMPLEMENTATION

Article 14. Reports

On a quarterly basis, enterprises must produce physical reports on foreign currency expenditure, collection, and other foreign currency-related activities using form under Appendix No. 3 attached hereto and submit to SBV (Foreign Exchange Department) and SBV branches of provinces and cities where they locate their venues of prize-winning electronic games intended for foreigners in person or via post service before the 10^th of the first month of the following quarter. Report data shall stretch from the 15^th of the month preceding the reporting period to the 14^th of the last month of the reporting period.

Article 15. Implementation

1. This Circular comes into force from September 1, 2022

2. This Circular hereby replaces following documents:

a) Circular No. 15/2014/TT-NHNN dated July 24, 2014 of the State Bank of Vietnam guiding foreign exchange management in the business of prize-winning electronic games intended for foreigners;

b) Circular No. NHNN dated August 30, 2017 of the State Bank of Vietnam on amendments to Circular No. 15/2014/TT-NHNN.

3. Chief of Office, Director of Foreign Exchange Department, heads of relevant entities affiliated to SBV, permitted banks, and enterprises providing prize-winning electronic games intended for foreigners are responsible for the implementation of this Circular./.

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PP. GOVERNOR
DEPUTY GOVERNOR




Pham Thanh Ha