NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
24 MAY-7 P3-.16
S. No.
Introduced by: Senator Raffy T. Tulfo
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS FILIPINO 
WORKERS
EXPLANATORY NOTE
Records of the Bangko Sentral ng Pilipinas reveal that cash remittances coursed 
through banks from Overseas Filipino Workers (OFW), land-based and sea-based 
combined, amounted to USD 2.84 billion on January 2024, a marked increase of 2.7 
percent from the previous year's record of USD 2.76 billion. The same spike was noted 
on the OFWs' personal remittances which increased from USD 3.07 billion to USD 3.15 
billion. In Philippine currency, this amount coverts more or less to a staggering PhplSO 
billion pesos.
The Philippine remittances from OFWs has consistently been the fourth largest in 
the world after India, Mexico, and China and has been a major stimulus that propels 
Philippine economic growth. It has likewise been proven based on our pandemic 
experience that OFW remittances has been a major factor in keeping our economy afloat 
in the midst of a global financial crisis.
In recognition of their enormous contribution to our economy, it is but pivotal to 
protect our OFWs from financial institutions that unduly impose exorbitant transfer and 
interest charges against their remittances. It is also crucial to provide them safe channels


where their hard-earned money can be safely transferred and ensure that their loved- 
ones and beneficiaries can ultimately reap the fruits of their labor.
In view of the foregoing, the approval of this


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
of ll)f 
p
24 MAY-7 P3:16
SENATE 
S. No.2660
Introduced by: Senator Raffy T. Tulfo
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:
1 
Section 1. Short Titie.-l\\\s Act shall be known as the "Overseas Filipino Workers
2 
(OFWs) Remittance Protection Act."
3 
Sec. 2. Declaration of Policy.- The Constitution affirms that labor is the primary
4 
social economic force and mandates the States to protect the rights of the workers and
5 
promote their welfare.
6 
Recognizing the significant contribution of OFWs to the national economy through
7 
foreign exchange remittances, the State shall adopt measures to protect the hard-earned
8 
money they remit home against usurious interest rates and exorbitant fees charged by
9 
financial institutions that deplete the value of their remittances and provide them and
10 
their families adequate education and training on financial literacy, such as financial
11 
planning and management of finances or savings, to help ensure a source of livelihood
12 
even after their overseas employment.


1 
Sec. 3. Definition of Terms. -
2 
a. Overseas Filipino Worker (OFW) - refers to a person who is to be engaged, is
3 
engaged or has been engaged in a renumerated activity in state of which the
4 
person is not a citizen or on board a vessel navigating the foreign seas of other
5 
than a government ship used for military or non-commercial purpose or on an
6 
installation located offshore or on the high seas; to be used interchangeably with
7 
migrant worker.
8 
b. Remittance - refers to the foreign exchange earnings sent home by OFWs or their
9 
employers or agents through formal channels.
10 
c. Remittance Fee - refers to the services fee or charged imposed by bank and non-
11 
bank financial intermediaries for sending money of OFWs through formal channels.
12 
Sec. 4. Applicability of this Act -The provisions of this Act shall be applicable to
13 
all OFW remittances, whether voluntary or mandated by law, orders, issuances or rules
14 
and regulations.
15 
Sec. 5. Discount on Remittances Fees and Tax Deduction Granted to
16 
Establishment - Bank and non-bank financial intermediaries may impose fees for services
17 
rendered in sending money of OFWs to their immediate family members, subject to a
18 
fifty percent (50%) discount.
19 
Bank and non-bank financial intermediaries providing discounts on remittance fees
20 
may claim the discounts granted as a tax deduction based on the cost of services
21 
rendered to OFWs. The discounts given should be treated as an ordinary and necessary
22 
expense deductible from the gross income of the intermediary falling under the category
23 
of itemized deductions: Provided, that the total deduction from the gross income of
24 
establishments providing discounts on remittance fees shall not exceed Twenty-four
25 
thousand pesos (P24,000.00) per OFW every taxable year: Provided, further, that the
26 
Secretary of Finance shall upon the recommendation of the Commissioner of Internal
27 
Revenue, issue the revenue regulation for the purpose.
28 
Sec. 6. Requirement of Posting of the Peso Equivalent of the Currency to be
29 
Exchanged.- k\\ bank and non-bank financial intermediaries offering remittance services


1 
to OFWs shall be required to post in a conspicuous place within the establishment's
2 
premises the Philippine peso equivalent rate of the foreign currencies being transacted.
3 
The Philippine peso equivalent of the amount as remitted will be the same amount that
4 
will be received by the beneficiaries of the remittance.
5 
Sec. 7. Prohibition from Raising Remittance Fees. - All banks and non-banks
6 
financial intermediaries offering remittances services to OFWs are prohibited from raising
7 
their current remittances fees without prior consultation with the Department of Finance
8 
(DOF), Bangko Sentral ng Pilipinas (BSP), Department of Migrant Workers (DMW) and
9 
the Philippine Overseas Employment Administration (POEA).
10 
Sec. 8. Other Prohibited Acts. -The following act are also prohibited:
11 
a. Misappropriation or conversion, to the prejudice of the OFW or beneficiary of
12 
foreign exchange remittances, received in trust, or on commission, or for
13 
administration, or under any other obligation, involving the duty to make delivery
14 
of, or return the same, or by denying having received such foreign exchange
15 
remittance;
16 
b. Taking of foreign exchange remittances without the consent of the OFW or
17 
beneficiary;
18 
c. Imposition of remittance fees in excess of those prescribed under Section 5 of this
19 
Act;
20 
d. Failure to post in a conspicuous place of the establishment the Philippine peso rate
21 
of the foreign currency being transacted; and
22 
e. Failure to conduct consultation with DOF, BSP, DMW and POEA before raising
23 
remittances fees.
24 
Sec. 9. Penalties. -
25 
a. Any person who is found guilty of any of the acts described in Section 8 (a) hereof
26 
shall be punished by:
27 
i. Imprisonment of two (2) months and one (1) day to six (6) months,
28 
if the amount of the remittances does not exceed Two Hundred
29 
pesos (P200.00);


1 
ii. 
Imprisonment of two (2) years and four (4) months to four (4) years
2 
and two (2) months, if the amount of the remittances is over Six
3 
Thousand Pesos (P6,000.00) but does not exceed Twelve Thousand
4 
Pesos;
5 
iii. 
Imprisonment of four (4) years, two (2) months and one (1) day to
6 
eight (8) years if the amount of the remittances is over Twelve
7 
Thousand Pesos (P12,000.00) but does not exceed Twenty Two
8 
Thousand Pesos (P22,000.00); and
9 
iv. 
Imprisonment of six (6) years to eight (8) years, adding one (1) year
10 
for each additional Ten Thousand Pesos (P10,000.00) but nor
11 
exceeding twenty (20) years, if the amount 
of the remittances is
12 
more than Twenty-Two Thousand Pesos (P22,000.00).
13 
b. Any person who is found guilty of violating Section 8 (b) of this Act shall be
14 
punished by;
15
16 
i. 
Imprisonment of six (6) months and one (1) day to four (4) years
17 
and two (2) months, if the amount of the remittance is over Two
18 
Hundred Pesos (P200.00) but does not exceed Six Thousand Peso
19 
(P6,000.00);
20 
ii. 
Imprisonment of two (2) years, four (4) months and one (1) day to
21 
six (6) years, if the amount of the remittance is over Six Thousand
22 
Pesos (P6,000.00) but does not exceed Twelve-Two Thousand Pesos
23 
(P12,000.00);
24 
iii. 
Imprisonment of six (6) years and one (1) day to ten (10) years, if
25 
the amount of the remittance is over Twelve Thousand Pesos
26 
(P6,000.00) but does not Twenty-Two Thousand Pesos
27 
(P22,000.00); and
28 
iv. 
Imprisonment of ten (10) years and one (1) day to twelve (12) years,
29 
adding one year for each additional Ten thousand pesos


1 
(P10,000.00) but not exceeding twenty (20) years, if the amount of
2 
remittances exceeds Twenty-Two Thousand Pesos (P22,000.00).
3
4 
c. Any person who is found guilty of violating Section 8 (c), (d) and (e) of this Act
5 
shall be punished by imprisonment of six (6) months and one (1) day to six (6)
6 
years and one (1) day and a fine of Fifty Thousand pesos (P50,000.00) but not
7 
exceeding Seven Hundred Fifty Thousand Pesos (P750,000.00).
8 
Aside from the criminal liability provided in the preceding paragraphs, institutions
9 
governed and supervised by the BSP found to have violated the provisions of Section 8
10 
of this Act shall be subjected to the necessary fines, penalties, and sanctions as provided,
11 
under the Republic Act. No. 7653 or the "New Central Bank Act", Republic Act No. 8791
12 
or the "General Banking Law of 2000", and other pertinent banking regulations.
13 
In case the violation is committed by a corporation or partnership, the liability shall
14 
be imposed on the president, managing director or partner, general manager, or other
15 
responsible officers of the corporation or partnership.
16 
Sec. 10. Mandatory Financial Education for OFWs and their Families. - The DOF,
17 
together with the BSP, POEA, and other agencies, shall ensure that a mandatory financial
18 
education program will be provided to OFWs and their families.
19 
The program shall include instruction on financial management, budgeting,
20 
investment options and similar topics, which shall educate the OFWs and their families in
21 
the handling of their earnings and remittances.
22 
Sec. 11. Liability under the Revised Pena! Code and Other Laws.- Prosecution under
23 
this Act shall be without prejudice to any liability for violation of any provision of the
24 
Revised Penal Code or other laws.
25 
Sec. 12. Implementing Agency. - The DOF shall in consultation with the BSP, POEA,
26 
DMW, Overseas Workers Welfare Administration, Department of Foreign Affairs, Bankers
27 
Association of the Philippines, Association of Bank Remittance Agents, Inc.,
28 
representatives from the placement or recruitment industry, non-government
29 
organizations advocating the rights and welfare of OFWs and other stakeholders, issue


1 
the necessary rules and regulations for the effective implementation of this Act, within
2 
ninety (90) days after the approval of this Act.
3 
Sec. 13. Repealing Clause.- k\\ laws, decrees, executive orders, issuances, rules and
4 
regulations which may be inconsistent with any of the provisions of this Act are hereby
5 
deemed repealed, amended or modified accordingly.
6 
Sec. 14. Separability Clause.- If any provision of this Act is held unconstitutional or
7 
invalid, such holding shall not affect other provisions not affected thereby.
8 
Sec. 15. Effectivity.-J\\\s Acy shall take effect fifteen (15) days after its publication in
9 
the Official Gazette or in a newspaper of general circulation.
Approved,