The Ministry of Finance to request compliance with regulations on lottery business in Vietnam

The Ministry of Finance to request compliance with regulations on lottery business in Vietnam (Internet image) 

On March 26, 2024, the Ministry of Finance issued Official Dispatch 3046/BTC-TCNH regarding compliance with regulations on lottery business.

The Ministry of Finance to request compliance with regulations on lottery business in Vietnam 

Specifically, following the inspection plan for 2023 issued with Decision 410/QD-BTC on March 21, 2023, the Ministry of Finance conducted inspections of 10 Lottery Companies. The inspection results revealed some existing limitations and deficiencies in their operations, including:

(i) Key leadership positions not being fully staffed for an extended period of time;

(ii) Procedures and regulations on financial management, Charter of organization and operations not being issued with proper authority, lacking the necessary content as required, and not being updated with legal provisions;

(iii) Improper allocation of funds from post-tax profits and failure to meet the conditions for allocation;

(iv) The composition and remuneration for the Lottery Supervisory Council not complying with regulations.

Upon completion of the inspection, the Ministry of Finance issued corrective instructions to the inspected Lottery Companies. Additionally, the Ministry of Finance annually issues documents to regulate lottery business activities.

To ensure compliance with legal regulations on lottery business within provinces and centrally-run cities, the Ministry of Finance recommends that the People's Committees of provinces and centrally-run cities, as the owners of lottery enterprises, direct local authorities and Lottery Companies to strictly adhere to regulations on lottery business. The following points should be noted:

(1) For local authorities:

- Regularly review and complete the organizational structure of Lottery Companies according to legal regulations (especially control officers and company leadership).

- Review and improve to issue bylaws on organizational activities and financial management in accordance with proper authority and legal regulations.

- Review and approve annual profit distribution plans and fund allocations (with emphasis on the Investment Development Fund and the Fund for Science and Technology Development) of Lottery Companies in accordance with legal provisions.

- Strengthen inspections and supervision of lottery business activities within their jurisdiction in accordance with legal regulations to detect, correct, and promptly handle any violations.

(2) For Lottery Companies:

- Report to the People's Committees on: (i) Proposals for the issuance or amendment of organizational bylaws and financial management regulations in accordance with proper authority and legal provisions; (ii) Proposals for profit distribution, allocation, and utilization of the Investment Development Fund, establishment of the Fund for Science and Technology, and compliance with regulations on fund allocation as stipulated by law; (iii) Compliance with regulations on the composition and remuneration of the Lottery Supervisory Council.

- Review and improve regulations and rules for participation in lottery draws, ensuring compliance with current legal provisions and proper public disclosure as required by law.

- Comply with legal regulations on lottery business, particularly regarding the types of lotteries allowed to be issued, regulations on agency contracts, fulfillment of payment obligations, and external investments. Strictly adhere to regulations on ticket distribution for traditional lotteries, retrieval of unsold tickets, and procedures for issuing, distributing, destroying, and managing manual lottery tickets.

For more details, please refer to Official Dispatch 3046/BTC-TCNH dated March 26, 2024.

Ho Quoc Tuan

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