There is an increase in award-winning e-gaming business for foreigners these days, especially casinos in Vietnam. This form of business is growing and offers many types of exciting, award-winning games, such as slots, sic bo, …
Following Decree 121/2021/ND-CP establishing the rules to improve the business management of award-winning electronic games for foreigners, the State Bank has now stipulated additional regulations to regulate exchange-related matters in Circular 09 /2022 /TT-NHNN (“Circular 09”). Circular 09 sets out the mechanisms for players to transfer winnings money overseas as well as a number of specific requirements governing companies providing electronic winning games, including as follows:
About the deed of earning money transfer abroad
In case a player receives the prize money in foreign cash, the player can choose to (i) sell it to a bank for Vietnamese money, (ii) transfer the foreign currency abroad, (iii ) bring the foreign currency abroad after receiving a confirmation letter from the bank, or (iv) deposit the foreign currency in a foreign currency payment account.
In case a player receives winning money by wire transfer, this foreign currency can be transferred from the e-gaming company’s account to the player’s payment account in Vietnam or abroad.
For the transfer of money or the request for the confirmation letter above, the electronic game company may act on behalf of the player if authorized to do so. Therefore, companies can note the application of this regulation to increase professionalism, providing a comprehensive service to players to attract customers for companies.
Liability of award-winning electronic game companies
In addition, each quarter, companies are required to submit reports to the State Bank’s Foreign Exchange Management Department no later than the 10th day of the first month of the following quarter. The report must clearly indicate the status of foreign exchange income and expenditure and other foreign exchange activities in accordance with the form in Annex 03 issued with Circular 09.
Award-winning electronic game enterprises should pay attention to the listing and public announcement of the exchange rate between the token currency in electronic game and Vietnamese dong as well as foreign currencies. Businesses must also implement the proper recording, statistics and record keeping regime when carrying out this activity.
Circular 09 also asks companies to develop internal regulations on the management and control of foreign exchange income and expenditure with the following content:
- Foreign currency revenue and expenditure procedures;
- Procedures for controlling foreign exchange receipts and expenditures, guaranteeing regulations on the prevention of money laundering and guaranteeing the security of money collected when conducting business;
- Functions, duties and powers of relevant departments and individuals.
Companies must pay attention to this content to avoid being administratively sanctioned for non-compliance with the obligations stipulated by Circular 09.