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

CASINO BUSINESS MUST HAVE LICENSES FOR COLLECTION AND PAYMENT OF FOREIGN CURRENCY

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

Accordingly, from September 06, the business of prize-winning electronic games for foreigners  such as collecting foreign-currency cash from the sale of tokens; collecting foreign-currency cash from prize-winning electronic gaming machines with the function of collecting foreign-currency cash directly from players; collecting foreign-currency transfers from overseas accounts of players; paying out in foreign-currency cash or via bank transfer prize money to prize-winning players; 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; 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…must be issued the licenses for collection and payment of foreign currency by the  SBV. 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.

Also in accordance with this Circular, enterprises licensed by the State Bank shall open 1 (one) special-use account for each type of foreign currency at 1 (one) licensed bank. Especially, at latest September 06, 2015, 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.

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; the enterprise is divided, merged, consolidated or dissolved or goes bankrupt in accordance with law; 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 or the enterprise has been sanctioned 3 or more times for administrative violations related to foreign exchange management shall be revoked the license of an enterprise  by the State Bank of Vietnam.