Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
1 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL No. _________ 
Introduced by Representative LORDAN G. SUAN 
EXPLANATORY NOTE 
The remittance of overseas Filipinos, which includes overseas contract 
workers and Filipino immigrants, residents, and non-immigrants abroad, has 
been the lifeblood of the Philippine economy. It is a significant contributor to 
the Gross National Income (GNI) of the country, a steady source of our Foreign 
Exchange Reserves, and a major source of income for Filipino households.  
Personal remittances from overseas Filipinos reached US$36.14 billion in 
2022, a 3.6% increase over remittance flows in 2021. It contributed 8.4% of the 
country's GNI. Personal remittances have already reached US$14.46 billion in 
the first five months of 2023, a 3.1% rise over the same period in 2022. This 
increase was due to increasing remittances sent by land-based workers with 
one-year contracts or longer, as well as sea-based and land-based workers with 
contracts of less than one year (BSP, 2023). According to the Philippine Statistics 
Authority, there are 1.83 million overseas Filipino workers, the majority of 
whom are women, and four out of every ten of them work in elementary 
occupations (PSA, 2022). 
The personal sacrifice of the Overseas Filipino Workers for this country 
and their families should be recognized and honored by the State by protecting 
their hard-earned remittances.  
This bill seeks that the remittance of OFWs be lowered to its minimum or 
at a discounted rate to lessen the burdensome fees charged by banks and money 
transfer service providers. It also aims to provide a special exchange rate for 
September 26, 2023
2:17 pm
9324


2 
their currency exchange to maximize the value of the money received by their 
families. These efforts will result in increased spending on education, health, 
goods, and services.  
In light of the preceding, this bill’s approval is fervently sought. 
 
 
 
 
LORDAN G. SUAN 
Cagayan de Oro City – 1st District 
 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
1 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL No. _________ 
Introduced by Representative LORDAN G. SUAN 
AN ACT PROVIDING PROTECTION TO THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS (OFWs), PROVIDING PENALTIES FOR VIOLATIONS 
THEREOF, AND FOR OTHER PURPOSES 
 Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. -  This Act shall be known as the “OFW Remittance 
1 
Protection Act.” 
2 
SECTION 2. Declaration of Policy. – The State shall ensure the protection of the 
3 
rights of the Overseas Filipino Workers (OFW) and ensure their welfare and that 
4 
of their families through adequate safeguards on their remittances pursuant to 
5 
Article II, Section 18 of the 1987 Constitution, which states, “The State affirms 
6 
labor as a primary social economic force. It shall protect the rights of workers 
7 
and promote their welfare.” 
8 
SECTION 3. Definition of Terms. - For this Act, the following terms are defined 
9 
as follows: 
10 
(a) Exchange Rate – refers to the unit price of a foreign currency relative
11 
to the domestic currency.
12 
(b) Money Transfer Service Provider – refers to a non-bank financial
13 
intermediary engaged in the transfer of funds by OFWs, their
14 
employer, or their representative to the OFW’s country of origin.
15 
(c) Overseas Filipino Worker - refers to a Filipino who is engaged in a
16 
remunerated activity in a country in which he or she is not an
17 
9324


2 
immigrant, citizen, or permanent resident, whether in a land-based 
1 
or sea-based working arrangement. 
2 
(d) Remittance – refers to the transfer of funds made by OFWs, their 
3 
employer, or their representative to the OFW’s country of origin 
4 
through a bank or money transfer service provider. 
5 
(e) Remittance Fee – refers to the amount charged for the services 
6 
rendered by the bank or money transfer service provider for the 
7 
transfer of funds. 
8 
SECTION 4. Special Remittance Fee. – The Bangko Sentral ng Pilipinas (BSP) shall 
9 
set a special remittance fee imposed by a bank or money transfer service 
10 
provider for the remittance made by the OFWs, their employer, or their 
11 
representative, which shall be as minimal as possible or maybe discounted. The 
12 
BSP shall offer a financial incentive to the bank or money transfer service 
13 
provider for the minimal or discounted remittance rate offered to the OFWs.  
14 
 
15 
Provided, that the special remittance fee shall not be raised by the bank or 
16 
money transfer service provider without prior notice and approval of the BSP. 
17 
 
18 
SECTION 5. Special Exchange Rate. – The BSP shall set a special exchange rate 
19 
exclusively for OFW remittances to maximize the value of money sent to their 
20 
families. It shall be at the discretion of the BSP to set the schedule of the special 
21 
exchange rate depending on inflation, interest rates, balance of trade, debt 
22 
rating, and the country’s economic performance. 
23 
 
24 
The special exchange rate shall apply to all remittances and money exchange 
25 
transactions of the OFW or his or her representative at all banks, money transfer 
26 
service providers, and money exchange establishments. 
27 
 
28 
Provided, that the BSP shall set the limit of the amount to be exchanged using 
29 
the special exchange rate. The exchange rate of the amount beyond the limit set 
30 
by the BSP shall follow the real-time exchange rate posted in the daily Reference 
31 
Exchange Rate Bulletin (RERB) of the BSP. 
32 
 
33 
Provided, further, that the BSP may temporarily suspend the application of the 
34 
special exchange rate during an economic crisis, recession, political instability, 
35 
pandemic, or market distortion that may be found prejudicial to the economic 
36 
stability of the country. 
37 
 
38 
SECTION 6. OFW Special Exchange Rate Card. – The OFW special exchange rate 
39 
identification card shall be issued by the Department of Migrant Workers 
40 


3 
(DMW) to an eligible OFW and a representative of his or her choice. It shall be 
1 
presented by the bearer to avail of the special exchange rate at banks, money 
2 
transfer service providers, or money exchange establishments.  
3 
 
4 
SECTION 7. Financial Incentive. - The BSP shall offer a financial incentive to the 
5 
bank, money transfer service provider, or money exchange establishment for 
6 
the special remittance rate and the special exchange rate offered to the OFWs.  
7 
 
8 
SECTION 8. Remittance or Money Exchange Receipt. – The bank, money transfer 
9 
service provider, or money exchange establishment that engages in OFW 
10 
remittance services or money exchange transactions shall provide a receipt that 
11 
contains the following information: 
12 
 
13 
(a) The exchange rate for the transacted foreign currency amount; 
14 
(b) The real-time exchange rate for the foreign currency amount that 
15 
exceeds the limit for the special exchange rate; and 
16 
(c) The remittance fee for the service rendered in the transfer of funds. 
17 
 
18 
SECTION 9. Request for Original Currency. – Banks and money transfer service 
19 
providers receiving remittances that specify that the original currency be paid 
20 
out shall comply with the contractual agreement entered into between them 
21 
and the sender. Provided, that when there is non-availability of the foreign 
22 
currency stipulated, the bank or service provider may ask for a waiver from the 
23 
recipient of his or her right to receive the specified foreign currency. In the 
24 
absence of a waiver or written consent, the recipient shall exercise his or her 
25 
right to demand compliance with the contractual agreement. 
26 
 
27 
SECTION 10. Punishable Acts. – The following acts committed by the bank, 
28 
money transfer service provider, or money exchange establishment and/or its 
29 
employees shall be punishable under this Act: 
30 
 
31 
(a) Failure to comply with the prescribed special remittance fee set by the 
32 
BSP; 
33 
(b) Failure to comply with the prescribed special exchange rate set by the 
34 
BSP; 
35 
(c) Failure to comply with the prescribed real-time exchange rate for the 
36 
foreign currency amount that exceeds the limit for the special 
37 
exchange rate; and  
38 


4 
(d) Substituting Philippine Peso currency for the specified foreign currency 
1 
stipulated in the contractual agreement without the written consent 
2 
of the recipient. 
3 
 
4 
SECTION 11. Penalties. – Any person, or in the case of a partnership or 
5 
corporation, the managing partner or the president, found to have committed 
6 
any unlawful acts or omissions provided for under this Act shall be punished with 
7 
imprisonment of not less than six (6) years but not more than ten (10) years and 
8 
a fine of not less than Two Hundred Thousand Pesos (Php200,000.00) but not 
9 
more than One Million Pesos (Php1,000,000.00). 
10 
 
11 
SECTION 12. Monitoring. The BSP shall regularly monitor the compliance of 
12 
banks, money transfer service providers, and money exchange establishments 
13 
with the provisions of this Act. 
14 
 
15 
SECTION 13. Implementing Rules and Regulations. Within sixty (60) days from 
16 
the promulgation of this Act, the BSP and the DMW shall formulate the 
17 
necessary rules and regulations for its effective implementation.  
18 
 
19 
Section 14. Separability Clause. If any provision of this Act is declared invalid or 
20 
unconstitutional, the provisions not hereby affected shall remain in full force 
21 
and effect. 
22 
 
23 
Section 15. Repealing Clause. All laws, decrees, orders, rules, and regulations, or 
24 
parts thereof, inconsistent with or contrary to the provisions of this Act are 
25 
repealed, amended, or modified accordingly. 
26 
 
27 
Section 16. Effectivity. This Act shall take effect fifteen (15) days from the date 
28 
of its publication in the Official Gazette, in at least 2 (2) newspapers of general 
29 
circulation, or a website provided for by law. 
30 
 
Approved,