Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
EXPLANATORY NOTE 
Overseas Filipino Workers (OFW) remittances has been the one of the life bloods of 
the Philippine economy. According to former Bangko Sentral ng Pilipinas (BSP) 
Governor, Benjamin Diokno, OFW remittances for 2021 is a record high $34.88 billion, 
5.1 percent higher than the year 2020 which amounted to $33.19 billion. It is 
equivalent to 8.9 percent of the country’s gross domestic product (GDP) and 8.5 
percent of the gross national income (GNI). 
This growth in personal remittances maybe attributed to the increase in OFW 
deployment amidst the strong demand for OFWs due to the opening of foreign 
economies to foreign workers and continues shift to digital support according to 
Former Governor Diokno, now our country’s Secretary of Finance.  
The income sent by our OFWs to their families should thereby be protected from 
abuse by unscrupulous individuals and should be given incentives due to their massive 
contribution in our economy.  
This bill seeks to protect OFW remittances from various abuses and provide discount 
on remittance fees and tax deduction granted to establishments.  
This bill was passed during the 18th Congress and is being reintroduced by the 
undersigned due to the above mentioned reasons. Its passage this Congress is 
earnestly sought.    
JOSEPH “JOJO” L. LARA 
August 1, 2022
5:12 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
AN ACT 
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "Overseas Filipino Workers 
(OFWs) Remittance Protection Act." 
SECTION 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 
their 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. 
SECTION 3. Definition of Terms. – As used in this Act: 
1 
(a) Overseas Filipino Worker (OFW) refers to a person who is to be engaged, is
engaged or has been engaged in a remunerated 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.
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(c) Remittance Fee refers to the service fee or charge imposed by bank and non-
bank financial intermediaries for sending money of OFWs through formal 
channels. 
 
SECTION 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. 
 
SECTION 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 OFWs. The discounts granted 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) per OFW 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. 
 
SECTION 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 beneficiary of the remittance. 
 
SECTION 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), and the Philippine Overseas 
Employment Administration (POEA). 
 
SECTION 8. Other Prohibited 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 to 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; 
 
(d) 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, and the POEA before raising 
remittance fees. 
 
SECTION 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 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 
(Php 12,000.00) but does not exceed Twenty-two thousand pesos (Php 
22,000.00); 
 
(ii) Imprisonment of six (6) years to eight (8) years, adding one (1) year for 
each additional Ten-thousand pesos (Php 10,000.00), but not exceeding 
twenty (20) years, if the amount of the remittance is more than Twenty two 
thousand pesos (PhP 22, 000.00); 
 
(iii)lmprisonment 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 
(Php 6,000.00) but does not exceed Twelve thousand pesos (Php 
12,000.00);  
 
(iv) Imprisonment of four (4) months and one (1) day to two (2) years and 
four (4) months, if the amount of the remittance is over Two hundred pesos 
(Php 200.00) but does not exceed Six thousand pesos (Php 6,000.00); and 
 
(v) 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 (Php 
200.00). 
 
(b) Any person who is found guilty of violating Section 8 (b) of this Act shall be 
punished by: 
 
(i) Imprisonment of six (6) years and one (1) day to ten (10) years, if the 
amount of the remittance is over Twelve thousand pesos (Php 12,000.00) 
but does not exceed Twenty-two thousand pesos (Php 22,000.00); 
 
(ii) Imprisonment often (10) years and one (1) day to twelve (12) years, adding 
one (1) year for each additional Ten thousand pesos (Php 10,000.00) but 


not exceeding twenty (20) years, if the amount of the remittance exceeds 
Twenty-two thousand pesos (Php22,000.00); 
 
(iii)lmprisonment 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 (Php 
6,000.00) but does not exceed Twelve thousand pesos (Php 12,000.00); 
and 
 
(iv)lmprisonment of six (6) months and one (1) day to four (4) years and two 
(2) 18 months, if the amount of the remittance is over Two hundred pesos 
(Php 200.00) but does not exceed Six thousand pesos (Php 6,000.00); and 
 
(c) Any person who is found guilty of violating Section 8 (c), (d) and (e) of this Act 
shall be punished by an imprisonment of six (6) months and one (1) day to six 
(6) years and one (1) day and a fine of Fifty thousand pesos (Php 50,000.00) 
but not exceeding Seven hundred fifty thousand pesos (Php 750,000.00). 
 
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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 12. Implementing Agency. – The DOF shall, in consultation with the 
BSP, POEA, 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. 


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