Circular No. 09/2022/TT-NHNN guiding foreign exchange management for the operation of electronic games with rewards for foreigners

CIRCULAR

Guidelines on foreign exchange management for the operation of electronic games with prizes for foreigners

Law amending and supplementing certain articles of the Law on Credit Institutions on November 20, 2017

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

Pursuant to the Law on Credit Organizations dated June 16, 2010; Pursuant to Decree No. 121/2021/NĐ-CP dated December 27, 2021 of the Government on operating electronic games with prizes for foreigners;;

On the basis of the Foreign Exchange Law dated December 13, 2005; the Ordinance Amending and Supplementing Certain Articles of the Foreign Exchange Law dated March 18, 2013;

Decree No. 16/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam

On the basis of The Governor of the State Bank of Vietnam issues this Circular guiding foreign exchange management for the operation of electronic games with prizes for foreigners.;

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

This Circular guides foreign exchange management for the operation of electronic games with prizes for foreigners. 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Enterprises operating electronic games with prizes for foreigners (hereinafter referred to as enterprises).

Article 2. Applicability

2. Individuals permitted to play at establishments offering electronic games with prizes for foreigners (hereinafter referred to as players).

3. Commercial banks, branches of foreign banks operating and providing foreign exchange services in Vietnam (hereinafter referred to as authorized banks).

Other organizations and individuals related to the operation of electronic games with prizes for foreigners.

FOREIGN EXCHANGE MANAGEMENT FOR THE OPERATION OF ELECTRONIC GAMES WITH PRIZES FOR FOREIGNERS

Chapter II

Article 3. Receiving and using prize money in foreign currency

Players may receive prize money in foreign currency and use such prize money as follows:

1. In the case where players receive prize money in cash foreign currency:

a) May sell the foreign currency to an authorized bank for Vietnamese dong;

b) May transfer the cash foreign currency prize money abroad through an authorized bank;

c) May have the cash foreign currency prize money confirmed by an authorized bank for taking it out of the country according to Clause 1, Article 11 of this Circular;

d) May deposit the cash foreign currency prize money into a foreign currency settlement account opened by the player at an authorized bank.

2. In the case where players receive prize money in transferred foreign currency:

a) May transfer the foreign currency prize money from the dedicated foreign currency account of the enterprise as stipulated in Article 6 of this Circular to a foreign currency settlement account opened by the player at an authorized bank;

b) May transfer the foreign currency prize money from the dedicated foreign currency account of the enterprise to an account of the player opened abroad.

3. Players may authorize the enterprise to contact an authorized bank to carry out transactions of depositing foreign currency, transferring foreign currency, and requesting a certificate to take foreign currency cash out of the country as prescribed in this Circular.

Article 4. Prescribed Currency

1. The denomination of the prescribed currency is denominated in Vietnamese dong or a convertible foreign currency. The enterprise shall convert the denomination of the prescribed currency into Vietnamese dong or other foreign currencies. The conversion rate is based on the quoted rate of the authorized bank where the enterprise opens its dedicated foreign currency account on the transaction date. In the event that the transaction date is a holiday, the conversion rate is based on the rate on the nearest preceding business day.

2. Players may exchange the prescribed currency for foreign currency or Vietnamese dong in cases where they do not use up the prescribed currency or win prizes in prescribed currency at the enterprise and may use the converted foreign currency to perform transactions as prescribed in Article 3 of this Circular.

2. The player may exchange the agreed-upon currency for foreign currency or Vietnamese dong in cases where they have not used up all of the agreed-upon currency or have won a prize in the agreed-upon currency at the enterprise, and may use the converted foreign currency to carry out transactions as prescribed in Article 3 of this Circular.

Article 5. Scope of foreign currency receipts and payments and other foreign exchange activities for enterprises

1. Enterprises that are granted a Foreign Currency Receipts and Payments License and Other Foreign Exchange Activities License (hereinafter referred to as the License) by the State Bank of Vietnam (hereinafter referred to as the State Bank) shall carry out the following activities:

a) Receiving foreign currency cash from the sale of prescribed currency;

b) Receiving foreign currency cash from electronic gaming machines with prize features that directly collect foreign currency cash from players;

c) Receiving transfers from overseas accounts or foreign currency settlement accounts opened at permitted banks in Vietnam into dedicated foreign currency accounts of the enterprise;

d) Paying foreign currency cash or transferring winnings to winning players;

đ) Paying foreign currency cash or transferring to foreign currency settlement accounts of players opened at permitted banks in Vietnam or transferring to overseas accounts of players when players do not play all of the prescribed currency;

e) Transferring foreign currency from dedicated foreign currency accounts of the enterprise to overseas accounts of players when players do not use up the transferred foreign currency from abroad into dedicated foreign currency accounts of the enterprise;

g) Other foreign exchange activities: opening and using dedicated foreign currency accounts; maintaining foreign currency cash reserves; confirming the amount of winnings for players.

2. The receipt, payment, and implementation of other foreign exchange activities related to the currency of neighboring countries shall be carried out in accordance with the provisions of the Bilateral Settlement Agreement between the State Bank and the central banks of neighboring countries. Enterprises granted Licenses for the currency of neighboring countries shall operate within the scope specified in Clause 1 of this Article.

Article 6. Opening and Using Dedicated Foreign Currency Accounts

Enterprises granted Licenses must open one dedicated account for each type of foreign currency at one permitted bank to serve business operations at one electronic gaming machine with prize establishment and shall conduct the following foreign currency receipt and payment transactions:

1. Receipts:

a) Depositing foreign currency cash into the account in cases where foreign currency cash receipts from the sale of prescribed currency, from electronic gaming machines with prize features exceed the reserve limit as stipulated in Article 8 of this Circular;

b) Receiving transfers from overseas accounts or foreign currency settlement accounts of players opened at permitted banks in Vietnam;

c) Receiving transfers from foreign currency settlement accounts of the enterprise as stipulated in Clause 2 of Article 7 of this Circular to meet the needs of paying out prizes, paying out remaining foreign currency as stipulated in points a and b of Clause 2 of this Article or the need to withdraw foreign currency cash as stipulated in point c of Clause 2 of this Article.

2. Payments:

a) Paying into foreign currency settlement accounts of players opened at permitted banks in Vietnam or abroad in cases where players win prizes or do not play all of the prescribed currency;

b) Paying remaining foreign currency into overseas accounts of players in cases where players do not use up the transferred foreign currency from their overseas accounts into dedicated foreign currency accounts of the enterprise;

c) Withdrawing foreign currency cash to maintain the required foreign currency cash reserve as stipulated in Clause 1 of Article 8 of this Circular;

d) Selling foreign currency to permitted banks;

đ) Transferring to foreign currency settlement accounts of the enterprise as stipulated in Clause 1 of Article 7 of this Circular.

Article 7. Transfer of foreign currency between settlement accounts and dedicated foreign currency accounts of enterprises

1. Enterprises may transfer foreign currency from their dedicated foreign currency account to their foreign currency settlement account opened at a permitted bank.

2. In cases where the amount of cash foreign currency in the enterprise's fund and the balance on the dedicated foreign currency account are insufficient to meet payment needs or the withdrawal of foreign currency cash as stipulated in points a, b, and c, Clause 2, Article 6 of this Circular, enterprises may transfer foreign currency from their foreign currency settlement account to their dedicated foreign currency account.

Article 8. Cash foreign currency fund

1. Enterprises may maintain a daily cash foreign currency fund for business operations at one Electronic Game with Prize Business Point (as recorded on the License) based on the calculation of the necessary amount of cash foreign currency to meet payment needs for prizes and the withdrawal of foreign currency cash for players who do not play out the agreed-upon currency.

2. On the next working day following the day when the enterprise receives more cash foreign currency from the operation of Electronic Games with Prizes than the allowed cash foreign currency fund, the enterprise must deposit the excess cash foreign currency into its dedicated foreign currency account opened at a permitted bank as stipulated in Article 6 of this Circular.

Article 9. Payment by credit card

The enterprise, as a card acceptance unit, may accept credit cards from players to sell the agreed-upon currency when participating in Electronic Games with Prizes. The currency received by the enterprise from the card payment organization shall be Vietnamese Dong.

Chapter III

RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS RELATED TO THE BUSINESS OF ELECTRONIC GAMES WITH PRIZES FOR FOREIGNERS TO ELECTRONIC GAMING BUSINESS ACTIVITIES Article 10. Responsibilities of the State Bank Branches in Provinces and Cities

1. Guide permitted banks and enterprises within their jurisdiction to fully comply with the provisions of this Circular and relevant laws.

2. Inspect, monitor, and supervise foreign currency collection and payment activities and other foreign exchange activities of enterprises within their jurisdiction that have been granted Licenses by the State Bank. In case of discovering violations of the provisions of the License and this Circular, the State Bank Branches in provinces and cities will handle them or report to competent authorities for handling according to the law.

3. Coordinate with related agencies, organizations, and individuals to implement anti-money laundering measures in the business of Electronic Games with Prizes for foreigners as prescribed by law.

Article 11. Responsibilities of permitted banks

1. Verify and control documents and certificates presented by players and enterprises to conduct transactions of depositing cash foreign currency into accounts, transferring foreign currency, and confirming the amount of foreign currency taken abroad by players according to the model attached as Appendix No. 01 issued along with this Circular.

The certificate for carrying cash foreign currency out of the country is only valid for use within thirty days from the date of issuance.

2. Retain documents and certificates related to foreign exchange transactions as prescribed in this Circular and relevant laws.

3. Timely report to the State Bank Branch in the province or city where the enterprise operates the Electronic Game with Prize Business Point for foreigners upon discovering any violations of this Circular by enterprises or players so that appropriate measures can be taken.

4. Comply strictly with the provisions of this Circular, laws on anti-money laundering, and relevant laws.

5. Sell foreign currency to enterprises in accordance with Clause 7, Article 12 of this Circular.

5. Sell foreign currency to enterprises in accordance with Clause 7, Article 12 of this Circular.

Article 12. Rights and responsibilities of enterprises

1. Listing and publicly announcing the exchange rate between the face value of the agreed currency and the Vietnamese dong and other foreign currencies.

2. Implementing the confirmation of winning, payment of winnings, and exchange of the agreed currency for players according to the model attached as Appendix No. 02 issued with this Circular, providing relevant documents and bearing legal responsibility for the legality of the winning amount, payment amount, and the amount exchanged from the agreed currency due to unused funds by players, serving as the basis for authorized banks to confirm the carrying and transferring of foreign currency out of the country and depositing foreign currency into the player's account in accordance with Article 3 of this Circular.

The certificate of winning, payment, and exchange of the agreed currency for players shall only be valid for use once within thirty days from the date of issuance.

3. Presenting complete documents and certificates to authorized banks when conducting transactions to deposit foreign currency cash into dedicated foreign currency accounts and transactions to sell and transfer foreign currency.

4. Implementing record-keeping, statistical, and document retention systems in accordance with related legal regulations.

5. Establishing internal management and control regulations for foreign currency income and expenditure in the operation of electronic games with prizes for foreigners, which must minimally include the following contents: procedures for receiving and paying foreign currency; procedures for controlling foreign currency income and expenditure to ensure compliance with anti-money laundering regulations and to ensure safety for cash received during business operations; functions, tasks, and authorities of relevant departments and individuals.

6. Strictly complying with the provisions stipulated in the License, the provisions of this Circular, the regulations on preventing and combating money laundering, and related legal provisions.

7. Being able to purchase foreign currency from authorized banks where the enterprise has opened dedicated foreign currency accounts in cases where the remaining foreign currency cash in the reserve, the balance of foreign currency on dedicated foreign currency accounts and foreign currency settlement accounts is insufficient to meet the needs for payment or the need to withdraw foreign currency cash to serve the operation of electronic games with prizes for foreigners within the scope of foreign currency income and expenditure and other foreign exchange activities of the enterprise as stipulated in Article 5 of this Circular, based on presenting documents and certificates ensuring the legality and validity of the transaction.

Article 13. Responsibilities of Players

Players are responsible for strictly adhering to the provisions of this Circular and related legal regulations.

Chapter IV

IMPLEMENTATION

Article 14. Reporting System

Quarterly, before the tenth day of the first month of each quarter, enterprises must submit written reports directly or through postal services to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank of Vietnam branch in the province or city where the enterprise operates foreigner-oriented electronic game prize businesses, regarding the situation of foreign currency income and expenditure and other foreign exchange activities according to the model attached as Appendix No. 03 issued with this Circular. The reporting period will be calculated from the fifteenth day of the month preceding the reporting period to the fourteenth day of the last month of the quarter in the reporting period.

Article 15. Implementation Provisions

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

2. This Circular replaces the following documents:

a) Circular No. 15/2014/TT-NHNN dated July 24, 2014, of the State Bank of Vietnam guiding foreign exchange management for the operation of electronic games with prizes for foreigners;

b) Circular No. 11/2017/TT-NHNN dated August 30, 2017, of the State Bank of Vietnam amending and supplementing certain articles of Circular No. 15/2014/TT-NHNN dated July 24, 2014, of the State Bank of Vietnam guiding foreign exchange management for the operation of electronic games with prizes for foreigners.

3. The Director of the Office, the Department Head of the Department of Foreign Exchange Management, the Heads of relevant units under the State Bank of Vietnam, authorized banks, and enterprises operating electronic games with prizes for foreigners are responsible for organizing the implementation of this Circular./.