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

RECEIVED ”
DATE 3.0 JUN 2075

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TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 275.

Introduced by Representatives Bryan B. Revilla, Lani Mercado-Revilla, and Ramon Jolo B.
Revilla Il

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

Remittances from Overseas Filipino Workers (OFWs) have long been a comerstone of the
Philippine economy, contributing billions of dollars annually and sustaining millions of
Filipino households. Despite their economic value, these remittances are often reduced by
high service fees, unfavorable exchange rates, and lack of financial protection mechanisms
for both OFWs and their families.

This bill seeks to institutionalize the protection of OFW remittances by regulating fees,
mandating transparency in exchange rates, and penalizing abuses by financial institutions.
It grants a 50% discount on remittance fees for transfers to immediate family members and
allows institutions that provide such discounts to claim them as tax-deductible expenses.
The bill also promotes financial literacy among OFWs and their families to encourage
smarter money management and long-term security.

By enacting this measure, the government affirms its constitutional duty to protect labor and
promote the welfare of OFWs. It ensures that the fruits of their sacrifices abroad reach their
families in full value and safeguards their financial contributions from predatory practices
and exploitation. In view of the foregoing, the passge of this bill - which was previously
approved on third and final reading by the House of Representatives — is earnestly sought.

‘
Ab B. REVILLA

Representative, AGIMAT Partylist

REP. RAMON JULO B. REVILLA III
Representative, 1" District of Cavite


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

‘TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 275_

Introduced by Representatives Bryan B. Revilla, Lani Mercado-Revilla, and Ramon Jolo B.
Revilla lit

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) Remittance 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. — As used in this Act:

a) Overseas Filipino Worker 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 earings sent home by OFWs or their
employers or agents through formal channels; and

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.

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.


SEC. 5. Discount on Remittance Fees and Tax Deduction Granted to
Establishments. — Fees imposed by banks and non-bank financial intermediaries on OFW
remittances to immediate family members shall be subject to a fifty percent (50%) discount.

Bank and non-bank financial intermediaries providing discounts on remittance fees may
claim the discounts granted as tax deduction based on the cost of services rendered to
OFWs to be treated as ordinary and necessary expense deductible from the gross income
of the intermediary falling under the category of itemized deductions: Provided, That the
Secretary of Finance shall, upon the recommendation of the Commissioner of Internal
Revenue, issue the pertinent 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 shall be the same amount that shall be
received by the beneficiary 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), and the Department of Migrant Workers (DMW).

SEC. 8. Prohibited Acts. — The following acts are also prohibited:

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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;

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

Imposition of remittance fees in excess of those prescribed under Section 5 of this
Act,

Failure to post in a conspicuous place of the establishment the Philippine Peso rate
of the foreign currency being transacted; and

Failure to conduct consultation with the DOF, BSP, and the DMW before raising
remittance fees.

b)

°)

d)

e)

SEC. 9. Penalties. — Any person who is found guilty of any of the acts described in
Section 8 hereof shall be punished by an imprisonment of six (6) months and one (1) day to
six (6) years 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 paragraph, 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

3


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. Free Mandatory Financial Education for OFWs and their Families. — The
DMW as the lead agency, in coordination with the Overseas Workers Welfare Administration
(OWWA), the DOF, and the BSP, shall ensure that a mandatory financial education program
— which shall be served free-of-charge — shall be provided to OFWs and their families.
These agencies shall likewise educate the OFWs and their families on the following
financial subjects, issues or programs: Consumer Protection, Protection on Mortgaged or
Collateralized Properties, Avoidance of Exorbitant Interests on Loans or Debts, and Credit
Information on Micro- and Small-Scale Enterprises to prospective lenders.

Financial education shall also include information on Obligations and Contracts, Credit
Transactions, Interests, Pledges, Mortgages, Guarantees, and knowledge on Financial
Products, such as stocks, bonds, insurance, and mutual funds, which are available in the
market.

As such, all OFWs shall undergo mandatory and continuously updated financial education
(literacy training) seminars which shall become an integral part of the Pre-Departure
Orientation Seminar (PDOS) of departing OFWs. Moreover, Post-Arrival Training Seminars
(PATS) on financial education or literacy shall likewise be required of OFWs within a
reasonable time upon their arrival in their respective countries of destination on their first
employment contract, or those who transfer from one place of work to another without
stopping by the Philippines.

Overseas Filipino Seafarers shall have the option of attending these continuously updated
financial education (literacy training) seminars at their respective points-of-hire, or within a
reasonable time, after their return to the Philippines.

Families of OFWs throughout the Philippines shall likewise be equipped with financial
education and knowledge through on-line seminars and other feasible and effective means.
The PDOS and PATS shall be primarily conducted by the DMW, in coordination with the
OWMA, the DOF, the BSP, the Department of the Interior and Local Government and alll the
barangays under it, and the accredited PDOS providers across the country, including the
embassies or consulates, whichever may be available, in the countries of destination.

The DMW shall regularly coordinate with the Department of Information and
Communications Technology and social media companies to disallow posts and messages
that are meant to confuse, mislead, victimize, defraud or entice OFWs and their families to
engage in gambling and other similar activities, including on-line scams, pyramiding
schemes, and the like.


As the lead agency, the DMW is tasked to formulate training modules on financial education
initiate and conduct training programs on financial management and
responsibility; apprise OFWs on financial opportunities and pitfalls, among others; ensure
the accessibility of qualified on-line financial and economic advisors and/or counselors; and
disseminate knowledge-expanding activities that promote financial education (literacy)
among OFWs and their dependents.

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 DMW shall, in consultation with the BSP,
DOF, OWWA, 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,