Circular No. 10/2017/TT-NHNN guiding foreign exchange management for casino business activities

CIRCULAR

Guidelines on foreign exchange management for casino operations

 

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

No. 06/2013/UBTVQH13 dated March 18, 2013;

Pursuant to the Foreign Exchange Ordinance No. 28/2005/PL-UBTVQH11 dated December 13, 2005 and the Ordinance No. 06/2013/UBTVQH13 dated March 18, 2013 amending and supplementing certain articles of the Foreign Exchange Ordinance;foreign exchange;

Pursuant to the Government Decree No. 03/2017/NĐ-CP dated January 16, 2017 on casino business;

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

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

The Governor of the State Bank of Vietnam issues this Circular guiding foreign exchange management for casino operations. 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides foreign exchange management for casino operations within the territory of Vietnam.

Article 2. Applicability

1. Casino business enterprises (hereinafter referred to as the enterprise).

2. Individuals permitted to play prize games at casino premises (hereinafter referred to as players), including:

a) Foreign nationals and overseas Vietnamese holding foreign passports issued by competent authorities of foreign countries, valid travel documents, and legally entering Vietnam (hereinafter referred to as foreign players);

b) Vietnamese individuals permitted to play at pilot casino premises in accordance with Clause 3, Article 12 of the Government Decree No. 03/2017/NĐ-CP dated January 16, 2017 on casino business (hereinafter referred to as Vietnamese players).

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

4. Other organizations and individuals related to casino business activities.

Chapter II

REGULATIONS ON FOREIGN EXCHANGE MANAGEMENT IN CASINO BUSINESS OPERATIONS

Article 3. Currency denomination conversion

1. Enterprises shall convert Vietnamese dong or other foreign currencies into designated currency and vice versa for players.

2. The exchange rate for converting Vietnamese dong or other foreign currencies into designated currency and vice versa shall be based on the buying rate of the authorized bank where the enterprise has a dedicated foreign currency account on the transaction date. In case the transaction date falls on a holiday, the exchange rate shall be based on the rate of the preceding transaction day.

Article 4. Scope of foreign currency receipts, payments, and other foreign exchange activities of enterprises

1. Except as provided in Clause 2 of this Article, the State Bank of Vietnam (hereinafter referred to as the State Bank) shall issue a License for foreign currency receipts, payments, and other foreign exchange activities (hereinafter referred to as the License) according to the form attached as Appendix No. 02 to this Circular for enterprises within the following scope:

a) Receipt of foreign currency cash from the conversion of designated currency;

b) Receipt of foreign currency cash from electronic gaming machines with prize functions that directly collect foreign currency cash from foreign players;

c) Receipt of foreign currency transfers as stipulated in Point a, Clause 1, Article 5 of this Circular;

d) Payment of foreign currency cash to foreign players as prizes or refunds when foreign players do not use up their designated currency;

đ) Payment of foreign currency transfers as stipulated in Point b, Clause 1, Article 5 of this Circular;

e) Other foreign exchange activities including: opening and using dedicated foreign currency accounts; foreign currency cash reserves; confirming prize amounts, payments, and conversions back to designated currency for players.

2. Transactions involving the currency of neighboring countries shall be carried out in accordance with the bilateral payment agreement between the State Bank and central banks of neighboring countries. For enterprises already permitted by the State Bank to receive and pay the currency of neighboring countries before the effective date of this Circular, they shall continue to operate in accordance with the previously approved documents.

Article 5. Special foreign currency account

1. Except for the cases provided for in Clause 2 of this Article, enterprises are permitted to collect, pay foreign currencies and other foreign exchange activities must open a special foreign currency account to serve casino business operations. An enterprise may only open 01 (one) special account corresponding to each type of foreign currency at 01 (one) permitted bank and use the special foreign currency account in accordance with the following provisions:

a) Receipts:

(i) Deposit foreign currency cash into the account when the amount of foreign currency cash in the enterprise's reserve exceeds the foreign currency cash reserve limit as stipulated in Article 6 of this Circular;

(ii) Collect transfers from overseas accounts of foreign players transferred in to exchange for the agreed currency;

(iii) Collect transfers from foreign players' foreign currency settlement accounts opened at permitted banks in Vietnam to exchange for the agreed currency;

(iv) Collect transfers from the foreign currency settlement account of the enterprise as prescribed in Clause 3 of this Article;

b) Payments:

(i) Transfer payments to the foreign currency settlement account of foreign players opened at permitted banks in Vietnam to pay winnings to foreign players who have won prizes, or refund in cases where foreign players do not play out the agreed currency or do not use up the amount of money when using a bank card to purchase the agreed currency. The amount of foreign currency refunded shall not exceed the amount of foreign currency that the foreign player has used to exchange for the agreed currency and the amount of foreign currency won as a prize;

(ii) Transfer payments to the overseas account of foreign players to pay winnings or refunds in cases where foreign players do not play out the agreed currency or do not use up the amount of foreign currency transferred from abroad into the enterprise's special foreign currency account. The amount of foreign currency refunded shall not exceed the amount of foreign currency that the foreign player has used to exchange for the agreed currency and the amount of foreign currency won as a prize;

(iii) Withdraw cash to maintain the amount of foreign currency cash in reserve as stipulated in Article 6 of this Circular;

(iv) Sell foreign currency to a permitted bank;

(v) Transfer to the foreign currency settlement account of the enterprise as prescribed in Clause 3 of this Article.

2. For enterprises permitted by the State Bank of Vietnam to collect and pay the currency of neighboring countries, in addition to the special foreign currency account, enterprises may open 01 (one) special account in the currency of neighboring countries to serve casino business operations within the scope of collection and payment as prescribed in Clause 1 of this Article.

3. Enterprises may transfer foreign currency between the special foreign currency account and the foreign currency settlement account opened at a permitted bank to serve casino business operations.

4. In the case of changing the permitted bank for conducting business and providing foreign exchange services where the enterprise opens a special foreign currency account as prescribed in point e, Clause 2, Article 33 of Decree 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business, within 05 working days from the date of adjustment of the License, the enterprise shall report the situation of closing and opening special accounts according to the form prescribed in Appendix No. 04 attached to this Circular.

Article 6. Cash Foreign Currency Balance in the Fund

1. Based on the business operation situation of the casino, the enterprise shall determine the daily cash foreign currency balance in the fund to meet the payment needs for rewards and the return of unused foreign currency cash to foreign players, while also agreeing in writing with the permitted bank where the enterprise has opened a dedicated foreign currency account regarding the cash foreign currency balance in the fund.

2. The cash foreign currency balance in the fund determined under Clause 1 of this Article must be recorded in the License.

3. On the next working day following the day when the foreign currency cash revenue from casino operations exceeds the cash foreign currency balance in the fund, the enterprise must deposit the excess foreign currency cash into the dedicated foreign currency account opened at the permitted bank.

4. For enterprises that have been permitted by the State Bank to handle cash foreign currency transactions for casino operations without converting their Licenses according to Article 35 of Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business, such enterprises must comply with the regulations on the cash foreign currency balance in the fund as stipulated in Clause 1 and Clause 3 of this Article.

Article 7. Payment by Bank Card

1. Enterprises are allowed to accept bank cards of players to exchange for the agreed-upon currency when participating in casino games. Enterprises can only receive payments in Vietnamese dong from the bank processing the card.

2. The use of bank cards in casino operations shall be mutually agreed upon between customers and enterprises based on compliance with current laws governing the provision of payment services, payment instruments, and foreign exchange management.

Article 8. Acceptance and Use of Winnings by Players

1. Foreign players may receive winnings in foreign currency or Vietnamese dong.

a) In the case where foreign players receive winnings in cash foreign currency:

(i) They may sell the foreign currency to a permitted bank or a foreign exchange agency of a permitted credit institution to obtain Vietnamese dong;

(ii) They may transfer the cash foreign currency winnings abroad through a permitted bank;

(iii) A permitted bank may confirm for them to carry the cash foreign currency winnings out of the country in accordance with Article 9 of this Circular;

(iv) They may deposit the cash foreign currency winnings into a foreign currency payment account of the foreign player opened at a permitted bank;

b) In the case where foreign players receive winnings in transferred foreign currency:

(i) The foreign currency winnings will be transferred from the dedicated foreign currency account of the enterprise to the foreign currency payment account of the foreign player opened at a permitted bank;

(ii) The foreign currency winnings will be transferred from the dedicated foreign currency account of the enterprise to the account of the foreign player opened abroad;

c) In the case where foreign players receive winnings in Vietnamese dong:

(i) They may deposit Vietnamese dong cash into a Vietnamese dong payment account of the foreign player opened at a permitted bank (in the case of receiving winnings in cash);

(ii) The Vietnamese dong winnings will be transferred from the payment account of the enterprise to the Vietnamese dong payment account of the foreign player opened at a permitted bank (in the case of receiving winnings by transfer);

d) Foreign players may authorize the enterprise to contact a permitted bank to perform transactions involving depositing foreign currency, transferring foreign currency, and requesting a certificate to carry foreign currency cash out of the country in accordance with this Circular. Such authorization among parties shall be carried out in writing in accordance with the law.

2. Vietnamese players may receive winnings in Vietnamese dong (cash or transfer).

Article 9. Confirmation of Winning, Payment of Prizes, Exchange of Specified Currency, and Confirmation of Exporting Foreign Currency Cash Abroad

1. Enterprises shall implement confirmation of winning, payment of prizes, and exchange of specified currency for foreign players according to the form attached as Appendix No. 05 to this Circular.

2. Banks permitted may implement confirmation regarding the amount of foreign currency cash taken abroad by foreign players according to the form attached as Appendix No. 06 to this Circular based on the confirmation of winning, payment of prizes, and exchange of specified currency presented by foreign players or enterprises (in cases where foreign players have authorized the enterprises).

3. The confirmation of winning, payment of prizes, and exchange of specified currency, and the confirmation of exporting foreign currency cash abroad shall only be valid within thirty days from the date of issuance.

Article 10. Validity Period of the Conversion License

The validity period of the Conversion License stipulated in Article 35 of Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business shall not exceed the remaining operating period specified in the Certificate of Eligibility for Casino Business or Investment Registration Certificate. In cases where the enterprise has not yet obtained the Certificate of Eligibility for Casino Business and the Investment Registration Certificate does not specify a specific business duration, the validity period of the Conversion License shall not exceed twenty years from the effective date of the Conversion License.

Chapter III

RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS RELATED TO CASINO BUSINESS ACTIVITY

Article 11. Responsibilities of the State Bank Branches in Provinces and Cities

1. Implement and guide permitted banks and enterprises within their jurisdiction to comply fully with the provisions of this Circular and related laws.

2. Provide opinions on the components of the application dossier for issuing, reissuing, amending, and extending the Foreign Currency Receipt and Payment License and other foreign exchange activities of enterprises within their jurisdiction as stipulated in Articles 32 and 33 of Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business.

3. Inspect and supervise the foreign currency receipt and payment activities and other foreign exchange activities of enterprises within their jurisdiction that have been granted licenses by the State Bank (where there is no Banking Inspection and Supervision Department) or coordinate with the Banking Inspection and Supervision Department to conduct inspections and supervision of the foreign currency receipt and payment activities and other foreign exchange activities of enterprises within their jurisdiction that have been granted licenses by the State Bank (where there is a Banking Inspection and Supervision Department).

4. Coordinate with relevant agencies, organizations, and individuals to implement measures to prevent and combat money laundering in casino business operations as prescribed by law.

Article 12. Responsibilities of Permitted Banks

1. Check and control the documents and certificates presented by foreign players and enterprises to carry out transactions of depositing foreign currency cash into accounts, transferring foreign currency, and confirming the amount of foreign currency taken abroad by foreign players.

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.

3. Within the scope of available foreign currency, permitted banks shall meet the demand for foreign currency cash of enterprises opening dedicated foreign currency accounts according to the agreed foreign currency cash reserve limit stipulated in Article 6 of this Circular.

4. When discovering violations of the provisions of this Circular by enterprises or players, promptly report to the State Bank branch in the province or city where the casino business point is located to take appropriate measures.

5. Comply strictly with the provisions of this Circular, laws on preventing and combating money laundering, and related laws.

Article 13. Responsibilities of the enterprise

1. Publicly display and announce the exchange rate between the Vietnamese dong and foreign currencies with the agreed currency.

2. Confirm winnings, pay out winnings, exchange the agreed currency for foreign players, provide relevant documents and certificates, and bear legal responsibility for the legality of the winning amount, payout amount, and the amount exchanged from the agreed currency due to unused funds by foreign players.

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. Purchase foreign currency to serve casino business operations within the scope of foreign currency receipts and payments and other foreign exchange activities of the enterprise as stipulated in Article 4 of this Circular, based on presenting transaction documents and papers ensuring legal and valid transactions.

5. Implement accounting records and retain relevant documents according to related legal regulations.

6. Establish internal management and control rules for foreign currency receipts and payments in casino business operations, which must minimally include the following contents: procedures for foreign currency receipts and payments; procedures for controlling foreign currency receipts and payments to comply with anti-money laundering regulations and ensure safety for cash received during business operations; functions, tasks, and authorities of relevant departments and individuals.

7. In cases where applications for issuance, reissuance, adjustment, extension, or conversion of Licenses are made, enterprises shall follow the procedures prescribed in Articles 32, 33, and 35 of Decree No. 03/2017/ND-CP dated January 16, 2017 of the Government on casino business and the application forms attached as Appendices 01, 03, and 08 to this Circular.

8. Strictly comply with the provisions in the License, the provisions in this Circular, laws on preventing and combating money laundering, and other relevant legal provisions.

9. Quarterly, before the twentieth day of the first month of each quarter, enterprises must report 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 casino business location is situated about the situation of foreign currency receipts and payments and other foreign exchange activities according to the form attached as Appendix 07 to this Circular.

10. Enterprises implementing the conversion as prescribed in Article 35 of Decree No. 03/2017/ND-CP dated January 16, 2017 of the Government on casino business must report on the implementation of foreign currency receipts and payments and other foreign exchange activities related to casino business operations from the date the State Bank of Vietnam issues the approval document until the conversion date according to the form attached as Appendix 09 to this Circular.

11. Within six months from the effective date of this Circular, enterprises that do not implement the conversion of Licenses as prescribed in Article 35 of Decree No. 03/2017/ND-CP dated January 16, 2017 of the Government on casino business must report 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 casino business location is situated about the dedicated foreign currency account as prescribed in Article 5 of this Circular.

Article 14. Responsibilities of Players

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

Chapter IV

IMPLEMENTATION

Article 15. Implementation Provisions

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

2. The Director of the Office, the Head of the Department of Foreign Exchange Management, the Heads of relevant units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities, the Chairmen of the Board of Directors, the Chairmen of the Board of Members, and the General Managers (Directors) of permitted banks, and the General Managers (Directors) of enterprises are responsible for organizing the implementation of this Circular.