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Republic of the Philippines 4
HOUSE OF REPRESENTATIVES. D|
Quezon City, Metro Manila *
NINETEENTH CONGRESS oy
First Regular Session

House Bill No, 8506

Introduced by Representatives HON. JOCELYN P. TULFO and
HON. RALPH WENDEL P. TULFO

According to the latest Overseas Filipinos’ Cash Remittances Statistics by the Bangko
Sentral ng Pilipinas, personal remittances from Filipinos abroad increased by 3.6% to a record
high of $36 billion in 2022 from its $34 billion recorded remittances in 2021

Despite our OFWs invaluable contributions to our economy by sending their hard-
earned money to their families, they are still unduly burdened by usurious interest rates and
exorbitant transfer fees charged by financial institutions against their remittances ranging from
P100.00 to almost P10,000.00 for each transfer.

For years, our economic growth has largely depended on OF W remittances with billions
of pesos being remitted annually. Recognizing the impact of OFW remittances, it is without
doubt that these remittances will continue to significantly affect our country’s economic growth
in the future.

It is high time that we give protection and importance to our fellow Filipinos” hard
earned money abroad. In view of the foregoing, the immediate passage of this bill is eamestly

sought.
REP. nif TY REP. RALPH WENDEL P. TULFO
Representative, ACECISffartylist Representaie, 2"! District of Quezon City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House Bill No, 8506

Introduced by Representatives HON. JOCELYN P. TULFO and
HON. RALPH WENDEL P. TULFO _

AN ACT PROVIDING FOR PROTECTION OF THE REMITTANCES OF
OVERSEAS FILIPINO WORKERS

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 “Overseas Filipino Workers
(OFWs) Remiuance Protection Act.”

SEC. 2. Declaration of Policy. ~ The Constitution affirms that labor is the primary social
economic force and mandates the State to protect the rights of the workers and promote their
welfare

Recognizing the significant contribution of OFWs to the national economy through foreign
exchange remittances, the State shall adopt measures to protect the hard-earned money they
remit home against usurious interest rates and exorbitant fees charged by financial institutions
that deplete the value of their remittances and provide them and their families adequate
education and training on financial literacy, such as financial planning and management of
finances or savings, to help ensure a source of livelihood even after their overseas employment

SEC. 3. Definition of Terms. —

a. Overseas Filipino Worker (OF W) - refers to a person who is to be engaged, is engaged or
has been engaged in a renumerated activity in a state of which the person is not a citizen or
on board a vessel navigating the foreign seas other than a government ship used for military
or non-commercial purposes or on an installation located offshore or on the high seas; to
be used interchangeably with migrant worker.

b. Remittance ~ refers to the foreign exchange earnings sent home by OFWs or their
employers or agents through formal channels,

Remittance Fee ~ refers to the service fee or charged imposed by bank and non-bank
financial intermediaries for sending money of OFWs through formal channels.

SEC. 4. Applicability of this Act. ~ The provisions of this Act shall be applicable to all
OFW remittances, whether voluntary or mandated by law, orders, issuances or rules and
regulations,


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SEC. 5, Discount on Remittance Fees and Tax Deduction Granted to Establishments.
—Bank and non-bank financial intermediaries may impose fees for services rendered in sending
money of OFWs to their immediate family members, subject to a fifty percent (50%) discount.

Bank and non-bank financial intermediaries providing discounts on remittance fees may
claim the discounts granted as a tax deduction based on the cost of services rendered to OF Ws.
The discounts given should be treated as an ordinary and necessary expense deductible from
the gross income of the intermediary falling under the category of itemized deductions:
Provided, that the total deduction from the gross income of establishments providing discounts
on remittance fees shall not exceed Twenty-four thousand pesos (P24,000.00) per OF W every
taxable year: Provided, further, that the Secretary of Finance shall, upon the recommendation
of the Commissioner of Internal Revenue, issue the revenue regulation for the purpose.

SEC, 6. Requirement of Posting of the Peso Equivalent of the Currency to be
Exchanged. ~ All bank and non-bank financial intermediaries offering remittance services to
OFWs shall be required to post in a conspicuous place within the establishment's premises the
Philippine peso equivalent rate of the foreign currencies being transacted. The Philippine peso
equivalent of the amount as remitted will be the same amount that will be received by the
beneficiaries of the remittance.

SEC. 7. Prohibition from Raising Remittance Fees. ~ All banks and non-bank financial
intermediaries offering remittance services to OFWs are prohibited from raising their current
remittance fees without prior consultation with the Department of Finance (DOF), Bangko
Sentral ng Pilipinas (BSP), Department of Migrant Workers (DMW) and the Philippine
Overseas Employment Administration (POEA).

SEC. 8 Other Pr

ted Acts. ~ The following acts are also prohibited:

(a) Misappropriation or conversion, to the prejudice of the OFW or beneficiary of foreign
exchange remittances, received in trust, or on commission, or for administration, or under
any other obligation, involving the duty to make delivery of, or return the same, or by
denying having received such foreign exchange remittance;

(b) Taking of foreign exchange remittances without the consent of the OFW or beneficiary;

(c) Imposition of remittance fees in excess of those prescribed under Section 5 of this Act;

(4) Failure to post in a conspicuous place of the establishment the Philippine peso rate of the
foreign currency being transacted; and

(e) Failure to conduct consultation with the DOF, BSP, DMW and POEA before raising
remittance fees

SEC. 9. Penalties. ~

(a) Any person who is found guilty of any of the acts described in Section 8 (a) hereof shall be
punished by:

(i) Imprisonment of two (2) months and one (1) day to six (6) months, if the amount
of the remittance does not exceed Two Hundred pesos (P200.00);

(ii) Imprisonment of two (2) years and four (4) months to four (4) years and two (2)
months, if the amount of the remittance is over Six Thousand Pesos (P6,000.00)
but does not exceed Twelve Thousand Pesos;


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(iii) Imprisonment of four (4) years, two (2) months and one (1) day to eight (8)
years if the amount of the remittance is over Twelve Thousand Pesos
(P12,000.00) but does not exceed Twenty Two Thousand Pesos (P22,000.00);
and

(iv) Imprisonment of six (6) years to eight (8) years, adding one (1) year for each
additional Ten Thousand Pesos (P10,000.00) but not exceeding twenty (20)
years, ifthe amount of the remittance is more than Twenty-Two Thousand Pesos
(P22,000.00)..

(b) Any person who is found guilty of violating Section 8 (b) of this Act shall be punished by:

(i) Imprisonment of six (6) months and one (1) day to four (4) years and two (2)
months, if the amount of the remittance is over Two Hundred Pesos (P200.00)
but does not exceed Six Thousand Peso (P6,000.00);

(ii) Imprisonment of two (2) years, four (4) months and one (1) day to six (6) years,
if the amount of the remittance is over Six Thousand Pesos (P6,000,00) but does
not exceed Twelve Thousand Pesos (P 12,000.00);

(iii) Imprisonment of six (6) years and one (1) day to ten (10) years, if the amount
of the remittance is over Twelve Thousand pesos (P12,000.00) but does not
exceed Twenty-Two Thousand Pesos (P22,000,00); and

(iv) Imprisonment of ten (10) years and one (1) day to twelve (12) years, adding one
year for each additional Ten thousand pesos (P10,000.00) but not exceeding
‘twenty (20) years, if the amount of remittance exceeds Twenty-Two Thousand
Pesos (P22,000.00).

(c) Any person who is found guilty of violating Section & (c), (d) and (e) of this Act shall be
punished by imprisonment of six (6) months and one (1) day to six (6) years and one (1)
day and a fine of Fifty Thousand pesos (PS0,000.00) but not exceeding Seven Hundred
Fifty Thousand Pesos (P750,000.00).

Aside from the criminal liability provided in the preceding paragraphs, institutions
governed and supervised by the BSP found to have violated the provisions of Section 8 of this
Act shall be subjected to the necessary fines, penalties, and sanctions as provided, under the
Republic Act No. 7653 or the “New Central Bank Act”, Republic Act No. 8791 or the “General
Banking Law of 2000”, and other pertinent banking regulations.

In case the violation is committed by a corporation or partnership, the liability shall be
imposed on the president, managing director or partner, general manager, or other responsible
officers of the corporation or partnership.

SEC. 10. Mandatory Financial Education for OFWs and their Families. — The DOF,
together with the BSP, POEA, and other agencies, shall ensure that a mandatory financial
education program will be provided to OFWs and their families.

The program shall include instruction on financial management, budgeting, investment
options and similar topics, which shall educate the OFWs and their families in the handling of
their earnings and remittances,


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SEC. 11. Liability under the Revised Penal Code and Other Laws. ~ Prosecution under
this Act shall be without prejudice to any liability for violation of any provision of the Revised
Penal Code or other laws.

SEC. 12. Implementing Agency. - ‘The DOF shall in consultation with the BSP, POEA,
DMW, Overseas Workers Welfare Administration, Department of Foreign Affairs, Bankers
Association of the Philippines, Association of Bank Remittance Officers, Inc., Philippine
Association of Foreign Exchange Dealers, Money Changers and Remittance Agents, Inc.,
representatives from the placement or recruitment industry, non-government organizations
advocating the rights and welfare of OFWs, and other stakeholders, issue the necessary rules
and regulations for the effective implementation of this Act, within ninety (90) days after the
approval of this Act.

SEC, 13. Repealing Clause. ~ All laws, decrees, executive orders, issuances, rules and
regulations which may be inconsistent with any of the provisions of this Act are hereby deemed
repealed, amended or modified accordingly.

SEC. 14. Separability Clause. - If any provision of this Act is held unconstitutional or
invalid, such holding shall not affect other provisions not affected thereby.

SEC. 15. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,