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SIXTEENTH CONGRESS ) 3 KS

REPUBLIC OF THE PHILIPPINES ) v girl “Ze

First Regular Session ) 3 RE CEIVED %&
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HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez
Representative Maximo B. Rodriquez, Jr.

House Bill No. 8045,

EXPLANATORY NOTE

The number of financial institutions offering international money transfer services has
recently doubled in view of intensified international business transactions of late and
increased remittances sent by Filipinos working abroad.

Given these developments, however, many financial institutions take advantage of
their clients by not disclosing certain crucial information to consumers before the transaction
consummation; hence, denying certain benefits which should accrue them.

There is a need to set in place appropriate disclosure mechanism. Any financial
institution or money transmitting business which initiates an intemational money transfer on
behalf of a consumer (whether or not the consumer maintains an account at such institution
of business) should therefore be required to make a good faith effort to provide the following
disclosures to the consumer before the consummation of the transaction:

(a) any fees to be charged to the recipient, including exchange rate or currency
conversion fees;

(b) a final itemization of all costs to the consumer, which would include all fees
charged, for the remittance; and

(c) the exact amount of foreign currency to be received by the recipient in the forelgn

country.

This proposed measure seeks to institutionalize disclosure practice in the
international money transfer to facilitate transparent and cost-effective transaction.

Immediate approval of this bill is eamestly sought.



‘SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No, 3945

AN ACT

TO REQUIRE CERTAIN DISCLOSURES IN CONNECTION WITH ANY INTERNATIONAL

MONEY

TRANSFER AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTIOI

IN 1. Short Title. - This Act shall be known as the “International Money Transfer

Disclosure Act’

SEC 2.
(1)

(2)

(3)

SEC 3.
1

Disclosures Required, —
General Regulations - Subject to paragraph (2), any financial institution or money
transmitting business which initiates an international money transfer on behalf of a
consumer (whether or not the consumer maintains an account at such institution or
business) shall make a good faith effort to provide the following disclosures to the
consumer before the consummation of the transaction:
‘a. Any fees to be charged to the recipient, including any exchange rate or
currency conversion fees;
b. A final itemization of all costs to the consumer, which would include all fees
charged, for the remittance;
c. The exact amount of foreign currency to be received by the recipient in the
foreign country.
Good Faith Effort - For purposes of paragraph (1), good faith effort requires
honesty in fact and all commercially reasonable efforts to provide the disclosures
based on the most accurate information reasonably available to the financial
institution or money transmitting business at the time of the international money
transfer.
Language Requirement — The disclosures required under subsection (a) shall be in
English and in the same language, if other than English, as the language principally
used by the financial institution or money transmitting business, or any of its agents,
to advertise, solicit, or negotiate, either orally or in writing, at the office of the
institution or business at which the international money transfer is initiated.

Definition. — For purposes of this Section, the following definitions shall apply -
International Money Transfer — The term ‘international money transfer’ means
any money transmitting service originating in the Philippines and involving an
international transaction which is provided by a financial institution or a money
transmitting business.

2. Money Transmitting Business — The term ‘money transmitting business’ means

any business which:

a. provides check cashing, currency exchange, or money transmitting or
remitiance services, or issues or redeems money orders, travelers
checks, and other similar instruments; and,

b. isnot depository institution as defined by appropriate laws.


SEC 4. Penalty. — Any financial institution that violates the disclosure requirements set forth
in this Act shall be made to pay a fine of not less than P50,000.00 plus suspension of
operations for a period not exceeding six (6) months. Second violation may cause
cevocation of necessary licenses, depending on the gravity of the offense as determined by
court acquiring jurisdiction over the same.

SEC 5. Separablity Clause. - If any provision or part hereof, is held invalid or
tnconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.

SEC 6. Repealing Clause. - Any law, presidential decree or issuance, executive order,
etter of instruction, administrative order, rule or regulation contrary to or inconsistent with the
provisions of this Act is hereby repealed, modified or amended accordingly

SEC 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least
two (2) newspapers of general circulation

‘Approved,