NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
House Bill No._______ 
Introduced by Antonio B. Legarda Jr. 
AN ACT  
PROVIDING FOR PROTECTION OF THE REMITTANCES 
OF OVERSEAS FILIPINO WORKERS 
EXPLANATORY NOTE 
Remittances are an important capital source for developing countries. This is 
because remittance flows tend to be more stable than capital flows, and they tend to be 
countercyclical—increasing during economic downturns or after a natural disaster 
when private capital flows tend to decrease.1 In countries affected by political conflict, 
they are often an economic lifeline to the poor.2 
According to the World Bank, the Philippines is the fourth largest recipient of 
remittances in 2021.3 In 2008, remittances from OFWs accounted for 12% of our gross 
domestic product (GDP).4 Although the amount of remittances declined mostly due to 
the pandemic, remittances still account for a large portion of our GDP. In 2021, BSP 
Governor Benjamin Diokno said personal remittances accounted for 8.9 percent of the 
Philippines‘ 2021 GDP.5 It is for this reason that OFWs are often touted as ‗‘modern day 
heroes‘‘ since they contribute tremendously to our national economy through their 
foreign exchange remittances.  
Despite their significant importance in our national economy, remittances from 
OFWs are subjected to various charges before it reaches their families. The costs of a 
remittance transaction include a fee charged by the sending agent, typically paid by the 
sender, and a currency-conversion fee for delivery of local currency to the beneficiary in 
another country. Some smaller operators charge the beneficiary a fee to collect 
remittances, presumably to account for unexpected exchange-rate movements. And 
remittance agents (especially banks) may earn an indirect fee in the form of interest (or 
―float‖) by investing funds before delivering them to the beneficiary. The float can be 
significant in countries where overnight interest rates are high.6 
1 https://www.imf.org/external/Pubs/FT/fandd/basics/76-remittances.htm 
2 Ibid. 
3 https://www.worldbank.org/en/news/press-release/2022/05/11/remittances-to-reach-630-
billion-in-2022-with-record-flows-into-ukraine 
4 https://www.adb.org/sites/default/files/publication/28401/economics-wp188.pdf 
5 https://business.inquirer.net/341015/cash-remittances-to-ph-hit-new-high-of-31-4b-in-2021 
6 https://www.imf.org/external/Pubs/FT/fandd/basics/76-remittances.htm 
August 2, 2022
4:56 pm
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Thus, this bill seeks to provide safeguards to protect the foreign exchange 
remittances of OFWs by: 1) granting a 50% discount on remittances received by their 
immediate family members; 2) prohibiting bank and non-bank financial intermediaries 
offering remittance services from raising their remittance fees without prior 
consultation from the Department of Finance, Bangko Sentral ng Pilipinas and 
Philippine Overseas Employment Agency; and 3) Mandatory Financial Education 
program to OFWs and their families.  
In line with the policy adopted by its original proponent Senator Loren Legarda, 
this bill therefore likewise serves as a counter-part House Bill. It is for the reasons stated 
above that the passage of this measure is earnestly sought. 
HON. ANTONIO B. LEGARDA JR. 


1
NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
House Bill No._______ 
Introduced by Hon. Antonio B. Legarda Jr. 
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 of 2022.‖ 
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. The State recognizes the significant contribution 
of OFWs to the national economy through their foreign exchange remittances.  In 
this regard, the State shall adopt effective measures to protect their hard-earned 
money remitted home against usurious interest rates and exorbitant fees charged by 
financial institutions. 
Sec. 3. Definition of Terms. - For purposes of this Act, the following terms 
shall be defined as follows: 
(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 he or she 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 
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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 employees or agents through formal channels. 
(c) 
―Remittance Fee‖ refers to the service fee or charge imposed by 
bank and non-bank financial intermediaries for the sending money of 
OFWs through formal channels. 
Sec. 4. Applicability of this Act. – The provisions of this Act shall apply to all 
OFW remittances, whether voluntary or mandated by law, orders, issuances or rules, 
and regulations. 
Sec. 5. Discounts on Remittance Fees and Discounts 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 (Php 24,000.00) 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.  
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 beneficiary of the 
remittance. 


 
 
3
 
Sec. 7. Prohibition from Raising Remittance Fees. – All bank 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).   
Sec. 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. 
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 six (6) years to eight (8) years, if 
the amount of the remittance is more than Twenty-Two 
Thousand Pesos (Php 22,000.00); adding one (1) year for 
each additional Ten Thousand Pesos (Php 10,000.00), but 
not exceeding twenty (20) years;  
(ii) 
Imprisonment of four (4) years, two (2) months, 
and one (1) day to six (6) years if the value of the 


 
 
4
remittance is over Twelve Thousand Pesos (Php 
12,000.00) but does not exceed Twenty-Two Thousand 
Pesos (Php 22,000.00);  
(iii) 
Imprisonment of two (2) years and four (4) months 
to four (4) years and two (2) months, if the value 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 value 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 value of the remittance does not 
exceed Two Hundred Pesos (Php 200.00). 
(b) 
Any person who is found guilty of violating Section 8 (b) 
hereof shall be punished by:  
(i) 
Imprisonment of ten (10) years and one (1) day to 
twelve (12) years, if the amount of the remittance exceeds 
Twenty-Two Thousand Pesos (Php 22,000.00); adding 
one (1) year for each additional Ten Thousand Pesos (Php 
10,000.00), but not exceeding twenty (20) years; 
(ii) 
 Imprisonment of six (6) years and one (1) day to 
ten (10) years, if the value of the remittance is over 
Twelve Thousand Pesos (Php 12,000.00) but does not 
exceed Twenty-Two Thousand Pesos (Php 22,000.00);  
(iii) 
Imprisonment of four (4) years, two (2) months, 
and one (1) day to six (6) years, if the value of the 
remittance is over Six Thousand Pesos (Php 6,000.00) but 
does not exceed Twelve Thousand Pesos (Php 12,000.00); 
and  


 
 
5
(iv) 
Imprisonment of six (6) months and one (1) day to 
four (4) years and two (2) months, if the value of the 
remittance is over Two Hundred Pesos (Php 200.00) but 
does not exceed Six Thousand Pesos (Php 6,000.00). 
 
(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 Bangko Sentral ng Pilipinas 
(BSP) found to have committed violations 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 
Department of Finance (DOF), together with the Bangko Sentral ng Pilipinas (BSP), 
Philippine Overseas Employment Administration (POEA), and other agencies, shall 
ensure that a mandatory financial education program shall be provided to OFWs 
and their families. 
The program shall include, but not be limited to, providing 
information 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. 


 
 
6
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 Department of Finance (DOF), in 
consultation with the BSP, POEA, Overseas Workers Welfare Administration 
(OWWA), Department of Foreign Affairs (DFA), Bankers Association of the 
Philippines (BAP), Association of Bank Remittance Officers, Inc. (ABROI), Philippine 
Association of Service Exporters, Inc. (PASEI), Philippine Association of Foreign 
Exchange Dealers, Money Changers and Remittance Agents, Inc. (PAFERAI), 
representatives from the placement or recruitment industry, non-government 
organizations advocating the rights and welfare of OFWs, and other stakeholders, 
shall issue the necessary rules and regulations for the effective implementation of 
this Act within ninety (90) days after its approval. 
Sec. 13. Repealing Clause. - All laws, decrees, executive orders, issuances, 
rules, and regulations that are inconsistent with the provisions of this Act are hereby 
repealed or amended 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 at least two (2) newspapers of general 
circulation. 
 
Approved,