Press release on the issuance of the Circular No.11/2017/TT-NHNN
The Governor of the State Bank of Vietnam (SBV) issued Circular No.11/2017/TT-NHNN dated August 30th, 2017 revising and amending several contents of Circular No.15/2014/TT-NHNN dated July 24th, 2014 by the SBV Governor guiding the exchange management of the business of prize-winning electronic games for foreigners.
Circular No.11/2017/TT-NHNN has 4 Articles including (1) Amending and supplementing a number of articles of Circular No.15/2014/TT-NHNN; (2) Replacing some annexes of Circular No.15/2014/TT-NHNN; (3) Responsibilities for implementation; and (4) Terms of implementation. The content of this Circular focuses on amending regulations on transitional provisions, dossiers, processes and procedures for the issuance, reissuance, adjustment, renewal and revocation of the License for foreign currency receipts and expenditures (License) as well as other foreign exchange transactions in accordance with the transitional provisions of Decree No. 175/2016/ND-CP to simplify administrative procedures; with the major substances as follow:
1. Amending the composition of dossiers for the licensing of foreign currency receipts and expenditures:
Adding the composition of dossiers which are written documents from competent government agencies permitting the business of prize-winning electronic game for enterprises licensed to operate in prize-winning electronic games before the effective date of Decree No.86/2013 / ND-CP.
At the same time, enterprises are no longer required to submit Certificate of eligibility for business in prize-winning electronic game if they are licensed to operate in prize-winning electronic game before the effective date of Decree No.86/2013/ND-CP or do not have the need to convert the Certificate of eligibility for business.
2. Revising of the validity period of License for foreign currency receipts and expenditures:
The time limit of License will maximally be equal to the remaining operational time limit specified in the Certificate of eligibility for business in prize-winning electronic game or a valid Investment Certificate or Business Registration Certificate, which includes the business operation of prize-winning electronic game or written documents from competent state management agencies permitting the business of prize-winning electronic game.
In case where the enterprise does not have a Certificate of eligibility for business in prize-winning electronic game or Investment Certificate; the Business Registration Certificate or written documents from competent state management agencies fail to specify about the business time limit, the time limit of License for foreign currency receipts and expenditures will not be more than ten (10) years maximally from the effective date of License.
3. Revising transitional provisions:
Allowing enterprises which have been issued with written approval of foreign currency cash receipts and expenditures before the effective date of Circular No.15/2014/TT-NHNN to continue in compliance with this Circular. However, those enterprises also can carry out procedures for converting previously approved documents into a new License.
Supplementing regulations for enterprises (that has been permitted to receive and pay by foreign currencies before the effective date of Circular No.15/2014/TT-NHNN) that those enterprises, in case not converting previously approved documents into a License, must report on foreign currency accounts in accordance with Article 6 of Circular 15/2014 / TT-NHNN to unify regulations on foreign exchange management for converted enterprises and non-converted enterprises.
4. Supplementing the scope of foreign currency receipts of gambling businesses: “Receive monetary sums via wire transfer from the gambler’s foreign currency demand accounts opened at authorized banks in Vietnam.”
5. Supplementing “Responsibilities held by authorized banks”: Banks are allowed to meet enterprises’ demand for foreign currency cash within the limits of foreign currency cash balance and the right of enterprises to buy foreign currencies.
6. Adding the provision on the time limit for the State Bank of Vietnam to issue official document requesting organizations to supplement dossiers in case the profiles are incomplete or invalid; Eliminating the dossiers requirement for certified original copies of documents, papers issued by SBV, archives ...
This Circular shall come into effect from October 15th, 2017.
THE STATE BANK OF VIETNAM
Translated by VA