Circular 09/2022/TT-NHNN foreign exchange management of the business of prize-winning video games for foreigners

CIRCULAR

Guiding the foreign exchange management of the business of prize-winning video games for foreigners

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

Pursuant to the June 16, 2010 Law on Credit Institutions; and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the December 13, 2005 Ordinance on Foreign Exchange and the March 18, 2013 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 121/2021/ND-CP of December 27, 2021, providing the business of prize-winning video games for foreigners;

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

At the proposal of the Director of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam promulgates the Circular guiding the foreign exchange management of the business of prize-winning video games for foreigners.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the foreign exchange management of the business of prize-winning video games for foreigners.

Article 2. Subjects of application

1. Enterprises engaged in the business of prize-winning video games for foreigners (below referred to as enterprises).

2. Persons permitted to play at facilities doing the business of prize-winning video games for foreigners (below referred to as players).

3. Commercial banks and foreign bank branches licensed to deal in foreign exchange and provide foreign exchange services in Vietnam (below referred to as licensed banks).

4. Other organizations and individuals involved in the business of prize-winning video games for foreigners.

Chapter II

FOREIGN EXCHANGE MANAGEMENT OF THE BUSINESS OF PRIZE-WINNING VIDEO GAMES FOR FOREIGNERS

Article 3. Receipt and use of prize money in foreign currency

Players may receive prize money in foreign currency and use foreign-currency prize money amounts according to the following provisions:

1. In case players receive foreign-currency prize money amounts in cash, they may:

a/ Sell foreign currency amounts to licensed banks to get Vietnam dong;

b/ Remit foreign currency amounts abroad via licensed banks;

c/ Obtain licensed banks’ certificates for bringing abroad foreign currency amounts under Clause 1, Article 11 of this Circular;

d/ Deposit foreign currency amounts into their foreign-currency payment accounts opened at licensed banks.

2. In case players receive foreign-currency prize money amounts by bank transfer, they may:

a/ Transfer foreign currency amounts from the enterprise’s special-use foreign currency account specified in Article 6 of this Circular to their foreign-currency payment accounts opened at licensed banks;

b/ Transfer foreign-currency amounts from the enterprise’s special-use foreign currency account to their accounts opened overseas.

3. Players may authorize the enterprise to contact a licensed bank for conducting transactions of foreign-currency amount payment and transfer and obtaining certificates for bringing abroad foreign-currency cash amounts in accordance with this Circular.

Article 4. Tokens

1. The par value of tokens may be nominated in Vietnam dong or a freely convertible foreign currency. An enterprise shall convert the foreign-currency par value of tokens into Vietnam dong or another foreign currency. The exchange rate used for the conversion is that quoted on the transaction date by a licensed bank at which the enterprise opens its special-use foreign currency account. In case the transaction date falls on a day-off or public holiday, the exchange rate used for the conversion is that quoted on the day preceding the transaction date.

2. Players may exchange tokens for a foreign currency or Vietnam dong if they have not used them up or if they win prizes in tokens at enterprises and may use foreign currency amounts exchanged from tokens for conducting the transactions specified in Article 3 of this Circular.

Article 5. Scope of collection and payment of foreign currency amounts and other foreign exchange activities of enterprises

1. Enterprises granted by the State Bank of Vietnam (below referred to as the State Bank) licenses for collection and payment of foreign currency amounts and other foreign exchange activities (below referred to as licenses) may carry out the following activities:

a/ Collecting foreign currency cash from the sale of tokens;

b/ Collecting foreign currency cash from gaming machines that have the function of collecting foreign currency cash directly from players;

c/ Collecting foreign currency amounts transferred from players’ overseas accounts or foreign-currency payment accounts opened at licensed banks in Vietnam to special-use foreign currency accounts of enterprises;

d/ Paying out foreign currency prize money amounts in cash or by bank transfer to prize-winning players;

dd/ Paying back foreign currency amounts in cash or by bank transfer to players’ foreign-currency payment accounts opened at licensed banks in Vietnam or to their overseas accounts in case players have not used up their tokens;

e/ Paying back foreign currency amounts by bank transfer from special-use foreign currency accounts of enterprises to overseas accounts of players in case players have not used up foreign currency amounts transferred from abroad to special-use foreign currency accounts of enterprises;

g/ Other foreign exchange activities: opening and using special-use foreign currency accounts; making foreign-currency cash balance; and certifying prize money amounts of players.

2. The collection and payment of foreign currency amounts and other foreign exchange activities related to the currency of a bordering country must comply with the bilateral payment agreement between the State Bank and the central bank of that bordering country. The State Bank shall grant licenses to enterprises with regard to the currency of a bordering country within the scope of activities specified in Clause 1 of this Article.

Article 6. Opening and use of special-use foreign currency accounts

An enterprise granted a license by the State Bank shall open 1 (one) special-use account for each type of foreign currency at 1 (one) licensed bank for conducting the business activities at 1 facility for the business of prize-winning video games and may conduct foreign-currency collection and payment transactions as follows:

1. Collection activities:

a/ Depositing foreign-currency cash into its account in case the foreign-currency cash amount collected from the sale of tokens and from gaming machines exceeds the cash balance specified in Article 8 of this Circular;

b/ Collecting amounts transferred from players’ overseas accounts or foreign-currency payment accounts opened at licensed banks in Vietnam;

c/ Collecting amounts transferred from foreign-currency payment accounts of enterprises under Clause 2, Article 7 of this Circular to meet the need for paying out prize money and the remaining foreign-currency amounts specified at Points a and b, Clause 2 of this Article, or the need for withdrawing foreign-currency cash specified at Point c, Clause 2 of this Article.

2. Payment activities:

a/ Making payments into players’ foreign-currency payment accounts opened at licensed banks in Vietnam or overseas in case players win prizes or have not used up tokens;

b/ Paying the remaining foreign-currency amounts into overseas accounts of players in case players have not used up the foreign currency amounts already transferred from their overseas accounts to special-use foreign currency accounts of enterprises;

c/ Withdrawing foreign-currency cash to maintain the foreign-currency cash balance specified in Clause 1, Article 8 of this Circular;

d/ Selling foreign currency amounts to licensed banks;

dd/ Transferring money amounts to foreign-currency payment accounts of enterprises under Clause 1, Article 7 of this Circular.

Article 7. Transfer of foreign currency amounts between foreign currency payment accounts and special-use foreign-currency accounts of enterprises

1. Enterprises may transfer foreign currency amounts from special-use foreign-currency accounts to foreign-currency payment accounts opened at licensed banks.

2. In case the foreign-currency cash balance and the balance on the special-use foreign-currency account are insufficient for paying out prize money or withdrawing foreign-currency cash prescribed at Point a, b or c, Clause 2, Article 6 of this Circular, enterprises may transfer foreign-currency amounts from the foreign-currency payment account to the special-use foreign currency account.

Article 8. The foreign-currency cash balance

1. An enterprise may maintain a daily foreign-currency cash balance for conducting business activities at 1 facility for the business of prize-winning video games (stated in its license) on the basis of calculating the foreign-currency cash amount necessary for paying out prize money and paying foreign-currency cash to players in case players have not used up their tokens.

2. On the working day following the day an enterprise earns a foreign-currency cash amount from the business of prize-winning video games exceeding the cash balance, the enterprise shall pay such excessive amount to the special-use foreign currency account opened at a licensed bank under Article 6 of this Circular.

Article 9. Payment by credit card

Enterprises being card-accepting units may accept credit cards of players to sell tokens when the latter play prize-winning video games. Enterprises may receive payments only in Vietnam dong from card payment banks.

Chapter III

RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS INVOLVED IN THE BUSINESS OF PRIZE-WINNING VIDEO GAMES FOR FOREIGNERS

Article 10. Responsibilities of provincial-level branches of the State Bank

1. To guide licensed banks and enterprises in localities to fully observe this Circular and relevant laws.

2. To inspect, examine and supervise the collection and payment of foreign currency amounts and other foreign exchange activities of enterprises in localities that have been granted licenses by the State Bank. If detecting violations of the licenses and this Circular, to handle them or submit them to competent authorities for handling in accordance with law.

3. To coordinate with related agencies, organizations and individuals in taking measures to prevent and combat money laundering in the business of prize-winning video games in accordance with law.

Article 11. Responsibilities of licensed banks

1. To check and control papers and documents presented by players and enterprises to conduct transactions of depositing foreign-currency cash into accounts, transferring foreign currency amounts, and issuing a certificate of foreign currency amounts brought abroad by players according to the form provided in Appendix No. 01 to this Circular.

A certificate for bringing abroad foreign-currency cash is valid for only 30 (thirty) days from the date of its issuance.

2. To preserve papers and documents related to foreign exchange transactions in accordance with this Circular and relevant laws.

3. To detect violations of this Circular committed by enterprises or players, and promptly report them to the provincial-level branches of the State Bank of the localities where the enterprises base their facilities for the business of prize-winning video games for foreigners for handling.

4. To observe this Circular, the anti-money laundering law and other relevant laws.

5. To sell foreign currency amounts to enterprises under Clause 7, Article 12 of this Circular.

Article 12. Rights and responsibilities of enterprises

1. To publicly post and announce the exchange rates between the par value of tokens and Vietnam dong and foreign currencies.

2. To issue a certificate of prize money amount, paid-out prize money amount, and amount exchanged from tokens for players according to the form provided in Appendix No. 02 to this Circular, provide related papers and documents and take responsibility before law for the lawfulness of prize money amounts, paid-out prize money amounts and amounts exchanged from tokens not used up by players as a basis for the licensed banks to issue a certificate for the bringing and transfer of foreign currency amounts abroad and payment of foreign currency amounts into accounts of players under Article 3 of this Circular.

A certificate of prize money amount, paid-out prize money amount, and amount exchanged from tokens for players is valid for a single use within 30 (thirty) days from the date of its issuance.

3. To fully produce papers and documents to licensed banks when conducting transactions of paying foreign-currency cash into special-use foreign currency accounts and foreign-currency sale and transfer transactions.

4. To keep records, make statistics and preserve documents in accordance with relevant regulations.

5. To formulate regulations on internal management and control of foreign-currency revenues and payments in the business of prize-winning video games for foreigners, which must at least have the following contents: foreign currency collection and payment process; foreign-currency revenue and payment control process in compliance with regulations on anti-money laundering and safety assurance for cash amounts collected in the business activities; and functions, tasks and powers of related divisions and persons.

6. To strictly comply with their licenses, this Circular, the anti-money laundering law and other relevant laws.

7. To be permitted to purchase foreign currency amounts from licensed banks where they open their special-use foreign currency accounts in case the foreign-currency cash balance and the balance on the special-use foreign currency accounts and foreign-currency payment accounts are insufficient for paying out prize money or withdrawing foreign-currency cash to serve the business of prize-winning video games within the scope of collection and payment of foreign currency amounts and other foreign exchange activities of enterprises specified in Article 5 of this Circular after producing papers and documents proving their lawful and valid transactions.

Article 13. Responsibilities of players

To strictly observe this Circular and relevant laws.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 14. Reporting regime

Quarterly, before the 10^th of the first month of the subsequent quarter, enterprises shall hand-deliver or send by post written reports on the situation of collection and payment of foreign currency amounts and other foreign exchange activities, made according to the form provided in Appendix No. 03 to this Circular, to the State Bank (the Foreign Exchange Management Department) and the provincial-level branches of the State Bank of the localities where the enterprises base their facilities for the business of prize-winning video games for foreigners. The data cutoff time shall be counted from the 15^th of the month preceding the reporting period to the 14^th of the last month of the quarter in the reporting period.

Article 15. Implementation provisions

1. This Circular takes effect on September 1, 2022.

2. This Circular replaces:

a/ The State Bank’s Circular No. 15/2014/TT-NHNN of July 24, 2014, guiding the foreign exchange management of the business of prize-winning video games for foreigners;

b/ The State Bank’s Circular No. 11/2017/TT-NHNN of August 30, 2017, amending and supplementing a number of articles of the State Bank’s Circular No. 15/2014/TT-NHNN of July 24, 2014, guiding the foreign exchange management of the business of prize-winning video games for foreigners.

3. The Chief of the Office, Director of the Foreign Exchange Management Department, and heads of related units of the State Bank, licensed banks and enterprises doing the business of prize-winning video games for foreigners shall organize the implementation of this Circular.-

For the State Bank Governor
Deputy Governor

PHAM THANH HA

^(*) The appendices to this Circular are not translated.