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

CIRCULAR

Amending and supplementing a number of articles of the State Bank of Vietnam’s Circular No. 15/2014/TT-NHNN of July 24, 2014, guiding the foreign exchange management of the business of prize-winning electronic games for foreigners[1]

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to December 13, 2005 Ordinance No. 28/2005/PL-UBTVQH11 on Foreign Exchange and March 18, 2013 Ordinance No. 06/2013/UBTVQH13 Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 86/2008/ND-CP of July 29, 2013, on the business of prize-winning electronic games for foreigners, and the Government’s Decree No. 175/2016/ND-CP of December 30, 2016, amending and supplementing a number of articles of the Government’s Decree No. 86/2008/ND-CP of July 29, 2013, on the business of prize-winning electronic 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 amending and supplementing a number of articles of the State Bank of Vietnam’s Circular No. 15/2014/TT-NHNN of July 24, 2017, guiding the foreign exchange management of the business of prize-winning electronic games for foreigners.

Article 1.To amend and supplement a number of articles of the State Bank of Vietnam’s Circular No. 15/2014/TT-NHNN of July 24, 2017, guiding the foreign exchange management of the business of prize-winning electronic games for foreigners (below referred to as Circular No. 15/2014/TT-NHNN)

1. To amend and supplement Point c of Clause 1, and Clause 2, of Article 5 as follows:

“c/ Collecting transfers from players’ overseas accounts or foreign-currency payment accounts opened at a licensed bank in Vietnam;”

“2. The collection and payment of, and other foreign exchange activities related to, currencies of countries bordering on Vietnam must comply with the Agreement on bilateral payment between the State Bank of Vietnam and central banks of bordering countries. The State Bank shall grant licenses for collection and payment of foreign currencies and other foreign exchange activities for currencies of bordering countries to enterprises according to the scope prescribed in Clause 1 of this Article. The order and procedures for the grant, re-grant, modification, extension and revocation of licenses must comply with Articles 10, 11 and 12 of this Circular.”

2. To amend and supplement Point b, Clause 1 of Article 6 as follows:

“b/ Collecting transfers from players’ overseas accounts or foreign-currency payment accounts opened at a licensed bank in Vietnam;”

3. To add the following Article 9a:

“Article 9a. Principles for making dossiers of application for licenses for collection and payment of foreign currencies and other foreign exchange activities

1. An enterprise shall send 2 (two) sets of dossier directly or by post to the State Bank branch of the province or centrally run city (below referred to as provincial-level State Bank branch) where the enterprise bases its facility for the business of prize-winning electronic games for foreigners.

2. A dossier shall be made in Vietnamese or translated into Vietnamese, in case it is in a foreign language, with certification by the enterprise’s lawful representative.

3. For dossier components being copies, an enterprise may submit either the copies granted from the master register books, certified copies or copies accompanied with the original for comparison. In case copies are submitted together with the original for comparison, the person making comparison shall certify the accuracy of the copies against the original.”

4. To amend and supplement Clauses 1, 3 and 4 of Article 10 as follows:

“1. An enterprise engaged in the business of prize-winning electronic games that need to collect and pay foreign currencies and conduct other foreign exchange activities prescribed in this Circular shall carry out procedures to apply for a license. A dossier must comprise:

a/ An application for a license made according to the form provided in Appendix No. 01 to this Circular;

b/ A copy of the investment certificate or enterprise registration certificate;

c/ A copy of a competent state management agency’s document permitting the business of prize-winning electronic games or a copy of the certificate of eligibility for the business of prize-winning electronic games in case the investment certificate or enterprise registration certificate does not cover the business of prize-winning electronic games (for enterprises licensed for the business of prize-winning electronic games before the effective date of Decree No. 86/2013/ND-CP) or a copy of the certificate of eligibility for the business of prize-winning electronic games (for enterprises licensed for the business of prize-winning electronic games after the effective date of Decree No. 86/2013/ND-CP);

d/ The regulation on internal management and control of foreign-currency revenues and expenditures, signed by the enterprise’s lawful representative.”

“3. Within 30 (thirty) working days after receiving a complete dossier as prescribed, the State Bank shall consider and grant a license according to the form provided in Appendix No. 02 to this Circular. In case of refusal, the State Bank shall issue a written notice clearly stating the reason.

In case the dossier is incomplete or invalid, within 10 (ten) working days after receiving such dossier, the State Bank shall issue a written request for the enterprise to complete the dossier.

4. The validity duration of a license equal at most the remaining validity duration prescribed in the certificate of eligibility for the business of prize-winning electronic games or the investment registration certificate or enterprise registration certificate, which must cover the business of prize-winning electronic games, or a competent state management agency’s written permission for the business of prize-winning electronic games. In case an enterprise has no certificate of eligibility for the business of prize-winning electronic games and the investment registration certificate or enterprise registration certificate, or a competent state management agency’s written permission does not specify the business validity duration, the validity duration of a license must not exceed 10 years counting from the effective date of this license.”

5. To amend and supplement Point a of Clause 1, Point b of Clause 2, and Points a and d of Clause 3, of Article 11 as follows:

“1. License re-grant:

a/ In case its license is lost, missing or damaged due to a natural disaster or fire or for another objective reason, an enterprise shall send a written request for license re-grant, clearly stating the reason for the re-grant, made according to the form provided in Appendix No. 03 to this Circular;”

“2. License modification:

b/ An enterprise that needs to modify its license shall carry out procedures to request for license modification. A dossier must comprise:

(i) A written request for license modification, clearly stating the reason for the modification, made according to the form provided in Appendix No. 03 to this Circular;

(ii) Documents and papers proving the modified contents’ compliance with Point a, Clause 2 of this Article (if any);”

“3. License extension:

a/ At least 30 (thirty) days before the expiration of a license granted by the State Bank, an enterprise shall carry out procedures to request for license extension. A dossier must comprise:

(i) A written request for license extension made according to the form provided in Appendix No. 03 to this Circular;

(ii) The papers prescribed at Points b and c, Clause 1, Article 10 of this Circular;

d/ The validity duration of a license must comply with Clause 4, Article 10 of this Circular;”

6. To add the following Clause 5 to Article 14:

“5. Within the current foreign currency supply capacity, banks may cater to the demand for foreign-currency cash of enterprises opening special-use foreign-currency accounts within the foreign-currency cash fund limits specified in Article 8 of this Circular.”

7. To add the following Clause 8 to Article 15:

“8. To purchase foreign currencies to serve the business of prize-winning electronic games within the scope of collection and payment of foreign currencies and other foreign exchange activities of enterprises specified in Article 5 of this Circular on the basis of producing receipts and papers ensuring lawful and valid transactions.”

8. To amend and supplement Clause 1, and Point a, Clause 3, of Article 17; and add Clause 4 to Article 17 as follows:

“1. Transitional period:

Enterprises which have been approved in writing by the State Bank to collect and pay foreign-currency cash for the business of prize-winning electronic games for foreigners before the effective date of this Circular shall continue to comply with the State Bank’s written approval. Enterprises shall carry out the procedure for converting such written approval into a license if wishing to do so.”

“3. The dossier, order and procedures for conversion:

a/ A dossier of request for conversion into a license must comprise:

(i) A written request for conversion into a license made according to the form provided in Appendix No. 08 to this Circular;

(ii) A copy of the investment certificate or enterprise registration certificate;

(iii)  A copy of a competent state management agency’s written permission for the business of prize-winning electronic games (in case the investment certificate or enterprise registration certificate does not cover the business of prize-winning electronic games) or a copy of a certificate of eligibility for the business of prize-winning electronic games (for enterprises that have a converted certificate of eligibility for the business of prize-winning electronic games granted by the Ministry of Finance);

(iv) The regulation on internal management and control of foreign-currency revenues and expenditures, signed by the enterprise’s lawful representative;

(v) The written approval for collection and payment of foreign currencies and other foreign exchange activities;

(vi) A report on the situation of collection and payment of foreign currencies and other foreign exchange activities related to the business of prize-winning electronic games from the time of obtaining the State Bank’s written approval, made according to the form provided in Appendix No. 09 to this Circular;”

“4. The validity duration of a license must comply with Clause 4, Article 10 of this Circular.”

Article 2.

To replace Appendices No. 01, 02, 03, 04, 06, 07, 08 and 09 to Circular No. 15/2014/TT-NHNN with Appendices No. 01, 02, 03, 04, 06, 07, 08 and 09 to this Circular, respectively.

Article 3.Responsibility for organization of implementation

The Chief of the Office, the Director of the Foreign Exchange Management Department and heads of related units of the State Bank of Vietnam, directors of provincial-level State Bank branches, chairpersons of Boards of Directors, chairpersons of Members’ Councils, directors general (directors) of licensed banks, and directors general (directors) of enterprises shall organize the implementation of this Circular.

Article 4.Implementation provisions

1. This Circular takes effect on October 15, 2017.

2. This Circular annuls Article 19 of the State Bank Governor’s Circular No. 29/2015/TT-NHNN of December 22, 2015, amending and supplementing a number of legal documents of the State Bank of Vietnam on dossier components requiring certified copies.

3. Within 6 (six) months after this Circular takes effect, an enterprise that fails to carry out the procedure for converting the previous written approval into a license shall report on the special-use foreign-currency account to the State Bank of Vietnam (the Foreign Exchange Management Department) and the provincial-level State Bank branch of the locality where the enterprise bases its facility for the business of prize-winning electronic games for foreigners according to Article 6 of Circular No. 15/2014/TT-NHNN.-

For the State Bank Governor
Deputy Governor
NGUYEN THI HONG

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