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

Circular

Guiding the 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/UBTVQH 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;

Pursuant to the Government’s Decree No. 156/2013/ND-CP of November 11, 2013, 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 exchange management of the business of prize-winning electronic games for foreigners.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

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

Article 2.Subjects of application

1.Enterprises engaged in the business ofprize-winning electronic games for foreigners (below referred to as enterprises).

2. Persons eligible to play at facilities for doing the business of prize-winning electronic 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 related to the business of prize-winning electronic 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 as follows:

1. In case of receiving foreign-currency prize money in cash:

a/ To sell foreign currencies to a licensed bank for Vietnam dong;

b/ To remit foreign-currency prize money in cash abroad via a licensed bank;

c/ To be certified by a licensed bank to bring abroad foreign-currency prize money in cash under Clause 1, Article 14 of this Circular;

d/ To deposit foreign-currency prize money in cash in the player’s foreign-currency payment account opened at a licensed bank.

2. In case of receiving foreign-currency prize money by bank transfer:

a/ The foreign-currency prize money may be transferred from a special-use foreign currency account of the enterprise to the player’s foreign-currency payment account opened at a licensed bank;

b/ The foreign-currency prize money may be transferred from a special-use foreign currency account of the enterprise to the player’s overseas payment account.

3. Players may authorize enterprises to contact licensed banks for conducting transactions of foreign currency payment and transfer and application for certificates for bringing abroad foreign-currency amounts in cash as prescribed in this Circular.

Article 4.Tokens

1.The par value of tokens may be nominated in Vietnam dong or a freely convertible foreign currency. Enterprises 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 announced by the licensed bank at which the enterprise opens its special-use foreign-currency account.

2.Players may exchange tokens for a foreign currency or Vietnam dong if they do not use them up or if they win prizes in tokens at enterprises and may use foreign currencies exchanged from tokens for transactions prescribed in Article 3 of this Circular.

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

1. Except the case specified in Clause 2 of this Article, the State Bank of Vietnam (below referred to as the State Bank) shall grant licenses for collection and payment of foreign currency and other foreign exchange activities (below referred to as licenses) to enterprises within the following scope:

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

b/ Collecting foreign-currency cash from prize-winning electronic gaming machines with the function of collecting foreign-currency cash directly from players;

c/ Collecting foreign-currency transfers from overseas accounts of players;

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

dd/ Returning foreign-currency amounts in cash or via bank transfer to players’ foreign-currency payment accounts opened at a licensed bank in Vietnam or to their overseas accounts in case players do not use up their tokens;

e/ Returning foreign-currency amounts transferred via bank to overseas accounts of players in case players do not use up all foreign-currency amounts transferred from abroad to special-use foreign-currency accounts of enterprises;

g/ Other foreign exchange activities prescribed in this Circular including opening and using special-use foreign-currency accounts; foreign-currency cash fund level; certifying received prize money of players.

2. The collection and payment of, and other foreign exchange activities related to, currencies of countries bordering on Vietnam may only be conducted in border areas and border-gate economic zones between Vietnam and bordering countries. The State Bank shall grant licenses for collection and payment of foreign currencies and other foreign exchange activities related to 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.

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

Enterprises licensed by the State Bank shall open 1 (one) special-use account for each type of foreign currency at 1 (one) licensed bank and may conduct foreign-currency collection and payment transactions as follows:

1. Collection:

a/ Depositing foreign-currency cash in the account in case the foreign-currency cash amount collected from the sale of tokens and electronic gaming machines exceeds the cash fund level prescribed in Article 8 of this Circular;

b/ Collecting amounts transferred from overseas accounts of players;

c/ Collecting amounts transferred from foreign-currency payment accounts of enterprises under Clause 2, Article 7 in order to meet the needs for paying out prize money or withdrawing foreign-currency cash prescribed in Clause 2 of this Article.

2. Payment:

a/ Paying into the players’ foreign-currency payment accounts opened at a licensed bank in Vietnam or overseas in case players win prizes or do not use up tokens;

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

c/ Only withdrawing cash to maintain the foreign-currency cash fund level prescribed in Clause 1, Article 8 of this Circular;

d/ Selling to licensed banks;

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

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

1. Enterprises may transfer foreign currencies from special-use foreign-currency accounts to foreign-currency payment accounts opened at a licensed bank.

2. In case the outstanding foreign-currency cash fund and the balance in the special-use foreign currency account are insufficient for meeting the needs for paying out prize money or withdrawing foreign-currency cash prescribed at Points a, b and 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 fund level

1. Enterprises may maintain a daily foreign-currency cash fund level (as prescribed in their licenses) on the basis of calculating the foreign-currency cash amount necessary for meeting the needs for paying out prize money and returning foreign-currency cash to players who do not use up their tokens.

2. If having a foreign-currency cash amount earned from the business of prize-winning electronic gaming in excess of the cash fund level, on the subsequent working day enterprises shall pay such 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 may accept credit cards of players to sell tokens for them to play prize-winning electronic games. Enterprises may receive payments only in Vietnam dong from card payment banks.

Chapter II

PROCEDURES FOR LICENSING ENTERPRISES TO COLLECT AND PAY FOREIGN-CURRENCY AMOUNTS AND CONDUCT OTHER FOREIGN EXCHANGE ACTIVITIES

Article 10.Licensing procedures

1. After receiving from a competent agency a certificate of eligibility for doing the business of prize-winning electronic games, an enterprise that needs to collect and pay foreign-currency amounts and conduct other foreign exchange activities prescribed in this Circular 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 the provincial-level State Bank branch) where the enterprise bases its facility for doing the business of prize-winning electronic games for foreigners. A dossier must comprise:

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

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

c/ A certified copy of the certificate of eligibility for doing the business of prize-winning electronic games;

d/ The regulation on internal management and control of foreign-currency revenues and payments, signed by the representative-at law of the enterprise.

2. Within 15 (fifteen) working days after receiving a dossier of an enterprise, the provincial-level State Bank branch shall check the completeness and validity of the dossier and send a dossier set to the State Bank (the Foreign Exchange Management Department)  enclosed with its written assessment on the dossier composition.

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). In case of refusal, the State Bank shall issue a written notice clearly stating the reason.

4. The validity duration of a license corresponds to that of the certificate of eligibility for doing the business of prize-winning electronic games of the enterprise and does not exceed 10 years counting from the effective date of this certificate.

Article 11.Procedures for license re-grant, modification and extension

1. License re-grant

a/ In case its license is lost, missing or damaged due to natural disaster, fire or other objective causes, an enterprise shall send 2 (two) sets of dossier of request for re-grant of a license directly or by post to the provincial-level State Bank branch of the locality where the enterprise bases its facility for doing the business of prize-winning electronic games for foreigners. A dossier must comprise:

- 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);

- A certified copy of the investment certificate or enterprise registration certificate;

-  A certified copy of the certificate of eligibility for doing the business of prize-winning electronic games;

- A certified copy of the still valid license (if any);

- Documents and papers proving that the license is lost, missing or damaged (if any);

b/ The procedure for sending a dossier to the State Bank (the Foreign Exchange Management Department) must comply with Clause 2, Article 10 of this Circular;

c/ The procedure for re-granting a license must comply with Clause 3, Article 10 of this Circular;

d/ The validity duration of the re-granted license is the remaining validity duration of the granted license at the latest time.

2. License modification

a/ An enterprise may have its license modified in the following cases:

- Change of enterprise name;

- Change of the licensed bank at which the enterprise opens its special-use foreign currency account;

- Change of the foreign-currency cash fund level.

b/ An enterprise that needs to modify its license shall send 2 (two) dossier sets of request for license modification directly or by post to the provincial-level State Bank branch of the locality where the enterprise bases its facility for doing the business of prize-winning electronic games for foreigners. A dossier must comprise:

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

- A certified copy of the still valid license;

- Documents and papers proving the changed content in conformity with Point a, Clause 2 of this Article (if any);

c/ The procedure for sending a dossier to the State Bank (the Foreign Exchange Management Department) must comply with Clause 2, Article 10 of this Circular;

d/ The procedure for granting a license must comply with Clause 3, Article 10 of this Circular;

dd/ The validity duration of the modified license is the remaining validity duration of the granted license at the latest time;

e/ In case of change of the licensed bank where an enterprise opens its special-use foreign currency account, within 5 (five) working days after having its license modified, the enterprise shall open a new special-use account and transfer the outstanding foreign-currency amount from the old special-use foreign-currency account to the new one or to the foreign-currency payment account, and at the same time carry out the procedures to close the old account and report it to the State Bank (according to the form provided in Appendix No. 04);

g/ Within 5 (five) working days after receiving the modified license, the enterprise shall return the granted original license to the State Bank (the Foreign Exchange Management Department).

3. License extension

a/ At the expiration of the license granted by the State Bank, an enterprise shall send 2 (two) dossier sets of request for license extension directly or by post to the provincial-level State Bank branch of the locality where the enterprise bases its facility for doing the business of prize-winning electronic games for foreigners. A dossier must comprise:

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

- A certified copy of the license which remains valid for at least 1 (one) month by the date of making the written request;

- Papers prescribed at Points b and c, Clause 1, Article 10 of this Circular;

b/ The procedure for sending a dossier to the State Bank (the Foreign Exchange Management Department) must comply with Clause 2, Article 10 of this Circular;

c/ The procedure for extending a license must comply with Clause 3, Article 10 of this Circular;

d/ The validity duration of the extended license corresponds to that of the certificate of eligibility for doing the business of prize-winning electronic games;

dd/ Within 5 (five) working days from the date of having its license extended, the enterprise shall return the granted original license to the State Bank (the Foreign Exchange Management Department).

Article 12.License revocation

The State Bank of Vietnam shall revoke the license of an enterprise in the following cases:

1. The license application dossier contains false information in order to be eligible for the grant of the license;

2. The enterprise fails to deploy foreign-currency collection and payment and other foreign exchange activities after 12 (twelve) months from the date of receiving the license.

3. The enterprise is divided, merged, consolidated or dissolved or goes bankrupt in accordance with law.

4. The enterprise has its investment certificate, enterprise registration certificate or certificate of eligibility for doing the business of prize-winning electronic games revoked by a competent state agency.

5. The enterprise has been sanctioned 3 (three) or more times for administrative violations related to foreign exchange management.

Chapter III

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

Article 13.Responsibilities of provincial-level State Bank branches

1. To guide licensed banks and enterprises in localities to fully observe the provisions of this Circular.

2. To inspect, examine and supervise the collection and payment of foreign currencies and other foreign exchange activities of enterprises in localities which have been licensed by the State Bank. If detecting violations of the provisions of the licenses and this Circular, to handle them in accordance with relevant laws.

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

Article 14.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 currencies and certifying foreign currency amounts brought abroad by players (according to the form provided in Appendix No. 05).

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 State Bank branches of the localities where the enterprises base their facilities for doing the business of prize-winning electronic games for foreigners, for handling.

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

Article 15.Responsibilities of enterprises

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

2. To certify prize winning and payment, exchange tokens for players (according to the form provided in Appendix No. 06), supply related papers and documents and take responsibility before law for the lawfulness of won and paid-out prize money amounts and amounts exchanged from tokens not used up by players as the basis for the licensed banks to certify the bringing and transfer of foreign currencies abroad and payment of foreign currencies into accounts of players under Article 3 of this Circular.

A certificate is valid for only 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 the transaction of paying foreign-currency cash into the 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 a regulation on internal management and control of foreign-currency revenues and payments in the business of prize-winning electronic games for foreigners, which must at least contain the following contents: foreign currency collection and payment process; foreign-currency revenue and payment control process in conformity with regulations on anti-money laundering and safety for cash amounts collected in the business; functions, tasks and powers of related sections and persons.

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

7. Quarterly, before the 10^thof the first month of the subsequent quarter, to report to the State Bank (the Foreign Exchange Management Department) and the provincial-level State Bank branch of the locality where the enterprise bases its facility for doing the business of prize-winning electronic games for foreigners, on the situation of foreign-currency collection and payment and other foreign exchange activities (according to the form provided in Appendix No. 07).

Article 16.Responsibility of players

To strictly observe the provisions of this Circular and relevant laws.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 17.Transitional provisions

1. Transitional time limit

Within 12 (twelve) months from the date this Circular takes effect, enterprises which have obtained the State Bank’s approval to collect and pay foreign-currency cash for the business of prize-winning electronic games for foreigners shall carry out the procedure for converting the previous approval documents into licenses. Past the above time limit, enterprises that fail to carry out the procedure for conversion shall terminate the collection and payment of foreign currencies and other foreign exchange activities related to the business of prize-winning electronic games for foreigners.

2. Transitional scope

The collection and payment of foreign-currency cash and other foreign exchange activities currently conducted by enterprises under the granted approval documents of the State Bank may be transferred to the licenses within the scope prescribed in Article 5 of this Circular.

3. The dossier, order and procedures for conversion

a/ An enterprise shall send 2 (two) sets of dossier of application for a license directly or by post to the provincial-level State Bank branch of the locality where the enterprise bases its facility for doing the business of prize-winning electronic games for foreigners. A dossier must comprise:

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

- A certified copy of the investment certificate or enterprise registration certificate;

-  A certified copy of the certificate of eligibility for doing the business of prize-winning electronic games;

- The regulation on internal management and control of foreign-currency revenues and payments, signed by the representative-at law of the enterprise;

- The granted approval document for the collection and payment of foreign currency and other foreign exchange activities;

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

b/ The procedure for sending a dossier to the State Bank (the Foreign Exchange Management Department) must comply with Clause 2, Article 10 of this Circular;

c/ The procedure for granting a license must comply with Clause 3, Article 10 of this Circular.

Article 18.Organization of implementation

1. This Circular takes effect on September 6, 2014.

2. 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.-

For the State Bank Governor
Deputy Governor
LE MINH HUNG