INSTRUCTIONS ON THE MANAGEMENT OF FOREIGN EXCHANGE FOR THE GAMBLING BUSINESS FOR FOREIGNERS

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

Pursuant to the Decree No. 86/2013/NĐ-CP dated July 29, 2013 of the Government on the gambling business for foreigners;

Pursuant to the Decree No. 156/2013/NĐ-CP dated November 11, 2013 of the Government on defining the functions, tasks, rights, duties and organization structure of the State Bank of Vietnam;

This Circular shall provide instructions on managing the foreign exchange for the gambling business for foreigners.

1. Enterprises specializing in the gambling business for foreigners (hereinafter referred to as gambling business).

2. Individuals eligible to play at the casino exclusively intended for foreigners (hereinafter referred to as gamblers).

3. Commercial banks and branches of foreign banks eligible to perform foreign currency transactions and supply foreign exchange services in Vietnam (hereinafter referred to as authorized bank).

4. Other organizations and individuals who are involved in the gambling business for foreigners.

Gamblers are entitled to receive the winnings paid in foreign currency and use this sumas follows:

1. If gamblers have won cash winnings paid in foreign currency (hereinafter referred to as foreign cash winnings), they are entitled to

a) Exchange their foreign currencies for Vietnamese dongs;

b) Transfer their foreign cash winningsoverseas through authorized banks;

c) obtain the bank’s confirmation of transfer of foreign cash winnings overseas according to the regulations stated at point 1, Article 14 of this Circular;

d) Deposit their foreign cash winnings into their demand accounts opened at authorized banks.

2. If gamblers receive their foreign cash winnings by wire transfer:

a) The foreign cash winnings shall be transferred from the gambling business’s special foreign currency account to the gambler’s foreign currency demand account opened at authorized banks;

a) The amount of foreign cash winnings shall be transferred from the gambling business’s special foreign currency account to the gambler’s accounts opened in foreign countries.

3. Gamblers are enabled to designate gambling businesses to contact authorized banks to carry out foreign exchange transactions and operations such as depositing and transferring foreign currency or applying for the bank’s confirmation of the gambler’s transfer of foreign cash winnings overseas as stipulated by this Circular.

1. The face value of token is released in Vietnamese dong or one of convertible foreign currencies. The gambling businesses must convert face value of token into Vietnamese dong or other foreign currencies. The exchange rate must comply with the exchange rate posted by authorized banks where gambling businesses open their special foreign currency accounts.

2. Gamblers are entitled to convert their tokens into foreign currency or Vietnamese dong in case they have not used it up or won the cash prizes paid in the token money at these gambling businesses as well as to use this converted sum to perform various foreign exchange transactions as regulated in Article 3 of this Circular.

1. Except for the case mentioned herewith in the regulations of clause 2 in this Article, the State Bank of Vietnam (hereinafter referred to as State Bank) shall grant the License for foreign currency receipts and expenditures as well as other foreign exchange transactions (hereinafter referred to as License) to gambling businesses within scope of transactions as follows:

a) Receive foreign currency cash from the sale of tokens;

b) Receive foreign currency cash from gambling machines that function as the staking tellers of foreign currency cash paid by gamblers;

c) Receive monetary sums via wire transfer from the gambler’s foreign accounts;

d) Spend foreign currency cash or send the amount of winnings via wire transfer to the winners;

dd) Reimburse foreign currency cash or send monetary sums via wire transfer to the gambler’s foreign currency demand accounts opened at authorized banks in Vietnam or to the gambler’s foreign accounts if the gambler’s tokens have not been used up;

e) Reimburse a sum of foreign currency via wire transfer to the gambler’s foreign accounts in case foreign currency amounts that gamblers have transferred to the gambling business’s special foreign currency account from overseas have not been used up;

g) Other foreign exchange transactions regulated in this Circular shall comprise the opening and use of their special foreign currency accounts; reserving their foreign currency cash balances; confirming the winnings that must be paid to gamblers.

2. Receipts, expenditures and other foreign exchange operations regarding the currency that is currently circulated in bordering countries shall be only permitted at the border areas and the border-checkpoint economic zones located in Vietnam and its bordering countries. The State Bank shall issue the License for receipts, expenditures and other foreign exchange transactions of the bordering country's currency to gambling businesses as regulated herewith at clause 1 of this Article. Processes and procedures for the issuance, reissuance, adjustment, renewal and revocation of the License shall comply with the regulations stated in Article 10, 11 and 12 of this Circular.

Gambling businesses who are granted the License by the State Bank must open 01 (one) special foreign currency account for each foreign currency at 01 (one) authorized bank and are entitled to carry out the receipts and expenditures of foreign currency as follows:

1. Receipts:

a) Deposit an amount of foreign currency cash into an account if the amount of foreign currency receipts cash earned from the sale of tokens and the gambling machines exceeds the cash balance regulated in Article 8 of this Circular;

b) Receive a monetary amount via wire transfer from gamblers’ foreign accounts;

c) Receive a monetary sum via wire transfer that is deposited into the gambling business’s foreign currency account as stipulated in clause 2 of Article 7 to afford the payment of winnings to gamblers or other cash payments and withdrawals as regulated in clause 2 of this Article.

2. Expenditures:

a) Deposit a monetary sum into the gambler’s foreign currency demand accounts opened at authorized banks in Vietnam or overseas in case gamblers have won the cash prizes or their tokens have not been used up;

e) Spend the remaining amount of foreign currency to deposit it into the gambler’s foreign accounts if the amount of foreign currency transferred from the gambler's foreign accounts to the gambling business's special foreign currency account has not been used up;

c) Withdraw an amount of foreign currency cash to serve the purpose of sustaining the sufficient amount of cash balance as regulated in clause 1 and Article 8 of this Circular;

d) Sell an amount of foreign currency cash to authorized banks;

dd) Transfer a sum of foreign currency cash to deposit it into the gambling business’s foreign currency demand account as regulated at clause 1 of Article 7 of this Circular.

1. Gambling businesses are entitled to transfer a sum of foreign currency in the special foreign currency account to the foreign currency demand account opened at authorized banks.

2. If the amount of cash in hand and cash balance in the special foreign currency account can not afford payments and withdrawals of foreign currency cash as regulated in point a, b, c, clause 2, Article 6 of this Circular, gambling businesses are entitled to transfer an amount of foreign currency cash from their foreign currency demand accounts to the special foreign currency account.

1. Gambling businesses are entitled to retain an amount of foreign currency cash in hand everyday (as prescribed in the License) on the basis of calculating a sufficient amount to afford the winnings and reimburse an amount of foreign currency cash to gamblers if tokens have not been used up.

2. In the consecutive working day from the date when an amount of receipts earned from the gambling business exceeds an amount of defined cash balance, gambling businesses are subject to depositing this surplus amount into the special foreign currency account opened at authorized banks as prescribed in Article 6 of this Circular.

Gambling businesses are entitled to accept the gambler's credit cards to sell out tokens to gamblers. Gambling businesses are only allowed to receive the payment in Vietnamese dong from the bank where credit cards have been granted.

1. After being granted the certificate of eligibility for the gambling business by competent agencies, gambling businesses who have the demand for their foreign currency receipts, expenditures and other foreign exchange transactions as prescribed in this Circular shall send 02 (two) sets of documentation submitted directly or sent by courier mails to the State Bank’s branches of centrally-governed cities and provinces where their gambling businesses for foreigners are located. Application documents must include:

a) A written request for the licensing (according to the form given in Annex No.01);

b) A certified true copy of the investment certificate or business registration certificate;

c) A certified true copy of the certificate of eligibility for the gambling business;

d) Internal rules and regulations on the control over foreign currency revenues and expenditures signed by the gambling business’s legally authorized representative.

2. Within the period of 15 (fifteen) working days from the receipt of gambling business's application documents, the State Bank’s branches in cities and provinces must be responsible to examine the adequacy and validity of these application documents and send 01 (one) set of documentation to the State Bank (c/o Department of Foreign Exchange Management) attached together with these branches’ valuations in writing on such documentation.

3. Within the period of 30 (thirty) working days from the receipt of entire required documentations, the State Bank must consider granting the License (following the form given in Annex No.02). In case of refusal, the State Bank must send a written notification to explain the reason for this refusal to gambling businesses.

4. The expiry date of the License must match that of the gambling business’s certificate of eligibility for the gambling business and must not exceed a maximum period of over 10 years from the effective date of this certificate.

1. License reissuance

a) Where the License has been lost, gone missing and damaged due to natural calamities, fire or other unexpected events, gambling businesses must send 02 (two) sets of documentation to apply for the reissuance of the License directly or by courier mails to the State Bank’s branches in cities and provinces where their gambling businesses for foreigners are located. Application documents must include:

- A written request for the reissuance (according to the form given in Annex No.03);

- A certified true copy of the investment certificate or business registration certificate;

- A certified true copy of the certificate of eligibility for the gambling business;

- A certified true copy of the previous License that is still valid (if any);

- Any record or proof of the License that has been lost, gone missing, damaged or broken (if any);

b) Procedures for the submission of application documents to the State Bank (c/o Department of Foreign Exchange Management) shall observe the regulations mentioned in clause 2, Article 10 of this Circular;

d) The expiry date of the reissued License shall adopt the remaining expiry date of the latest License.2. License adjustment

a) Gambling businesses shall be entitled to adjust their Licenses in the following cases:

- The gambling business name that may be changed;

- Authorized banks where gambling businesses open their special foreign currency accounts that may be changed;

- The amount of foreign currency cash in hand that may be changed.

b) Any gambling business who needs to make changes to the contents of the License must send 02 (two) sets of requesting documentation to apply for the adjustment in their License directly or by courier mails to the State Bank’s branches in cities and provinces where their gambling businesses for foreigners are located. Application documents must include:

- A written request for the adjustment which expresses clear reasons for the adjustment (according to the form given in Annex No.03);

- A certified true copy of the previous License that is still valid;

- Records or written evidence of the adjusted contents in conformity with the regulations stated at point a, clause 2 of this Article (if any);

c) Procedures for the dispatch of application documents to the State Bank (c/o Department of Foreign Exchange Management) shall be governed by the regulations mentioned at clause 2, Article 10 of this Circular;

d) Procedures for the issuance of the License shall adhere to the regulations stated at clause 3, Article 10 of this Circular;

dd) The expiry date of the amended License shall be the remaining expiry date of the latest License;

e) If an authorized bank where gambling businesses open their special foreign currency accounts has been changed within the period of 05 (five) working days from the completion of the License adjustment, gambling businesses must open a new special foreign currency account and carry forward the remaining amount of foreign currency from the old special foreign currency account to the new one or the special foreign currency account, concurrently follow certain procedures for terminating the old account as well as send a report to the State Bank (according to the form given in Annex No.04);

g) Within the period of 05 (five) working days from the adjustment that has been already made, a gambling business is obliged to return the original License to the State Bank (c/o Department of Foreign Exchange Management).

3. License renewal

a) Whenever the License issued by the State Bank expires, gambling businesses must send 02 (two) sets of documentation to apply for the renewal directly or by courier mails to the State Bank’s branches in cities or provinces where their gambling businesses for foreigners are located. Application documents for the renewal of the License must include:

- A written request for the renewal (according to the form given in Annex No.03);

- A certified true copy of the previous License that is still valid within a minimum of 01 (one) month prior to submitting the application form for the renewal;

- Other required records or documents regulated at point b, c of clause 1 of Article 10 in this Circular;

b) Procedures for the dispatch of application documents to the State Bank (c/o Department of Foreign Exchange Management) shall observe the regulations mentioned at clause 2, Article 10 of this Circular;

c) Procedures for the renewal of the License shall adhere to the regulations stated at clause 3, Article 10 of this Circular;

d) The expiry date of the renewed License must correspond to the expiry date of the certificate of eligibility for the gambling business for foreigners;

dd) Within the period of 05 (five) working days from the renewal date, gambling businesses are obliged to return the original License to the State Bank (c/o Department of Foreign Exchange Management).

The State Bank must revoke the gambling business’s License in the following cases:

1. Application documents applying for the issuance of the License consist of the information that has been falsified to obtain the License.

2. The receipts and expenditures of foreign currency as well as other foreign exchange transactions of gambling businesses have not been started after 12 (twelve) months from the licensing date.

3. Any gambling business has been separated, merged, consolidated, dissolved, or bankrupted in accordance with laws.

4. Gambling business’s investment certificate, business registration certificate or certificate of eligibility for the gambling business has been revoked by competent authorities.

5. Any gambling business has been subject to administrative punishments in 03 (three) times or more for their violations against regulations on the foreign exchange management.

1. Provide instructions for authorized banks and gambling businesses throughout such cities and provinces to strictly comply with regulations stated in this Circular.

2. Examine, inspect and supervise the receipts and expenditures of foreign currency as well as other foreign exchange transactions of gambling businesses that have been licensed by the State Bank to operate in such areas. Where any violation against regulations specified in the License and regulations of this Circular has been detected, the State Bank's local branches in cities and provinces shall handle it under relevant legal regulations.

3. Cooperate with relevant agencies, organizations and individuals to take measures in preventing and combating the money laundering in the gambling business as regulated by laws.

1. Examine and control every record or document submitted by gamblers or gambling businesses to perform various foreign exchange transactions such as depositing foreign currency cash into an account, transferring foreign currency and verifying the gambler’s amount of foreign currency transferred overseas (according to the form given in Annex No.05).

The letter of confirmation of the gambler’s transfer of foreign currency cash overseas is only valid within 30 (thirty) days from the release date.

2. Retain any record and document regarding the foreign exchange transactions as prescribed in regulations of this Circular as well as relevant laws.

3. Detect any violation against regulations of this Circular that has been committed by gambling businesses and gamblers as well as send a timely report to the State Bank’s branches in cities or provinces where gambling businesses locate their gambling businesses for foreigners to seek proper solutions.

4. Strictly comply with regulations specified in this Circular and laws on prevention and fighting against the money laundering as well as relevant legislation.

1. Publicize the exchange rate between the face value of tokens and Vietnamese dong as well as other foreign currencies.

2. Confirm the winning claims, payment of winnings and conversion of tokens for gamblers (according to the form given in Annex No.06), provide any relevant record and document as well as take legal responsibility for the validation of the winnings and the amount converted from tokens that have not been used up as a basis for the authorized bank’s confirmation of the transfer of foreign currency overseas or the depositing of foreign currency into the gambler's accounts as stipulated by Article 3 of this Circular.

The letter of confirmation is only valid to be used once within 30 (thirty) days from the release date.

3. Provide full of required documents and records for authorized banks when performing various banking transactions such as the depositing of foreign currency cash into the special account of foreign currency, the sale and transfer of foreign currency.

4. Perform proper bookkeeping, statistical operation and custody of records in accordance with relevant legal regulations.

5. Set up internal rules and regulations on controlling the receipts and expenditures of foreign currency in the gambling business for foreigners, which must at least include the contents such as processes for receipts and expenditures of foreign currency; control over receipts and expenditures of foreign currency in conformity with regulations on preventing and combating the money laundering as well as protecting safety for the cash earnings; functions, rights and duties of gambling business’s relevant divisions and individuals.

6. Strictly adhere to regulations specified in the License, this Circular and laws on the prevention and fighting against the money laundering as well as relevant legislation.

7. Gambling businesses must send a quarterly report prior to the 10^th date of the first month of the successive quarter to the State Bank (c/o Department of Foreign Exchange Management) and its branches in cities, provinces where gambling businesses locate their gambling businesses for foreigners on the receipts and expenditures of foreign currency as well as other foreign exchange transactions (according to the form given in Annex No.07).

Strictly comply with regulations specified in this Circular and governing laws.

1. Transitional deadline

Within a period of 12 (twelve) months as from the effective date of this Circular, gambling businesses that are previously entitled to receive and pay foreign currency cash for their gambling businesses for foreigners by the State Bank must follow required procedures for transforming the pre-existing written consent into the License. In excess of the defined deadline mentioned above, gambling businesses who have failed to complete the transformation must put an end to their receipts and expenditures of foreign currency as well as other foreign exchange transactions regarding their gambling businesses for foreigners.

2. Transitional scope

Receipts and expenditures of foreign currency cash as well as other foreign exchange transactions that have been governed under the pre-existing written consent of the State Bank must be equivalently transitioned to the License as stipulated in Article 5 of this Circular.

3. Documentations, processes and procedures for the transition

a) Gambling businesses must submit 02 (two) sets of documentation to apply for the issuance of the License directly or by courier mails to the State Bank’s branches in cities or provinces where gambling businesses locate their gambling businesses for foreigners. Application documents must comprise:

- A written request for the transformation of the License (according to the form given in Annex No.08);

- A certified true copy of the investment certificate or business registration certificate;

- A certified true copy of the certificate of eligibility for the gambling business;

- Internal rules and regulations on managing and controlling the receipts and expenditures of foreign currency signed by the gambling business’s legally authorized representatives;

- A written approval for the receipts and expenditures of foreign currency cash as well as other foreign exchange transactions that have been granted;

- A report on the receipts and expenditures of foreign currency cash as well as other foreign exchange transactions for the gambling business that has been compiled as from the State Bank's granting a written consent (according to the form given in Annex No.09);

b) Procedures for the dispatch of application documents to the State Bank (c/o Department of Foreign Exchange Management) shall observe the regulations mentioned at clause 2, Article 10 of this Circular;

c) Procedures for the issuance of the License shall adhere to the regulations stated at clause 3, Article 10 of this Circular;

1. This Circular shall come into effect from September 06, 2014.

2. The Chief of Staff, Director of Foreign Exchange Management, Heads of relevant regulatory agencies of the State Bank of Vietnam, Director of the State Bank’s branches of centrally-governed cities and provinces, President of the Board of Directors, President of the Members Board, Chief Executive Officer (Director) of gambling businesses shall be responsible for the implementation of this Circular.