Latest regulations on foreign exchange management at casinos

On 30 August 2017, the State Bank of Vietnam (“SBV”) promulgated Circular No. 10/2017/TT-NHNN guiding foreign currency transactions and foreign exchange management for casino business (“Circular 10”) with following notable points:

1. Along with the Certificate of eligibility for casino business, enterprises must have the Permit foreign currency transactions and foreign exchange management for activities issued by the SBV in order to conduct the following activities:

  - Receive foreign currency cash from the sale of tokens;

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

  - Receive foreign currency wire transfer;

  - Spend foreign currency cash as amount of winnings to foreign winners or reimburse foreign currency cash if a foreign gambler’s tokens have not been used up

  - Send monetary sums via wire transfer; and

  - Other foreign exchange transactions such as: opening and using the special foreign currency accounts; reserving foreign currency cash balances; confirming the amount of winnings, bonuses, reimbursement of tokens that must be paid to gamblers.

However, the enterprises having been licensed to receive, spend, and carry out foreign exchange transactions on the currencies of the bordering countries under bilateral payment agreements prior to 15 October  2017 will comply with the prior written approvals.

2. Enterprises allowed to receive, spend foreign currency and carry out other foreign exchange activities must open one and only one (01) specialized account of foreign currency for casino business corresponding to each foreign currency at an authorized bank.

3. Furthermore, Circular 10 provides that only foreign gamblers are allowed to select to receive winnings in foreign currency or Vietnamese Dong while Vietnamese gamblers just receive them in Vietnamese Dong in cash or by wire transfer.

Circular 10 will take effect on 15 October 2017.