THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
FIRST REGULAR SESSION 
1 
8
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Introduced by SENATOR LUISA “LOI” P. EJE 
EXPLANATORY NOTE 
The number of financial institutions offering international money transfer services 
has recently doubled in view of intensified international business transactions of late, 
coupled with increased remittances sent by Filipinos working abroad. 
Given these developments, however, many financial institutions take advantage of 
their clients by not disclosing certain crucial idormation 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 fiyancial 
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 
instithion or 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 any exchange rate or 
currency conversion fees. 
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(b) 
A final itemization of all costs to the consumer, which would include all 
fees charged, for the remittance. 
(e) 
The exact amount of foreign currency to be received by the recipient in the 
foreign country. 
Through the proposed measure, it is hoped that such disclosure practice should 
finally be institutionalized. 
Hence, immediate enactment of this bill is earnestly sought. 
A 
L 
EJERCITO ESTWDA 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF TEIE PHlLTpPINES 
1 
FIRST REGUEAR SESSION 
) 
S 
E 
4 ‘  0 
S.B. NO. 
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Introduced by SENATOR LUISA “LOP‘ P. EJERCITO ESTWADA 
AN ACT 
TO REQUIRE CERTAIN DISCLOSURES l[N CONNECTION WITH ANY 
INTERNATIONAL MONEY TRANSFER AND FOR OTHER PURPOSES 
Be it enacted hy the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short title - This Act shall be known as the “International Money 
Transfer Disclosure Act”. 
SECTION 2. DiscZosures re4rcied - (a) REGULATIONS- 
(1) IN GENERAL -Subject to paragraph (Z), 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 fith effort to provide the 
following disclosutes to the consumer before the consummation ‘of’ the 
transaction: 
(A)Any fees to be Gharged 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. 


(2) 
FAITH EFFORT- For purposes of paragraph (l), good faith effort 
requires honesty in fact and all commercially reasonable efforts to provide 
the disclosures based on the most accurate information reasonably avail'able 
to the financial institution or money transmitting business at the time of the 
international money transfer. 
(3) 
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. 
SECTION 3. DeJinitions. - For purposes of this section, the following definitions 
shall apply: 
(1) 
(2) 
INTERNATIONAC M O E Y  
SFER- 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. 
MONEY TRANSMITTING BUSIf6ESS- The term 'money transmitting 
business' means any business which-- 
(A) provides check cashing, currency exchange, or money trans~tting 
or remittance services, or issues or redeems money orders, travelers' 
checks, and other similar instruments; and 
(B) is not a depository institution as defined by appropriate laws 


SECTION 4.Penalty - Any financial institution that violates the disclosure 
requirements set forth in this Act shall be made to pay a fine not less than P50,OOO.OO 
plus suspension of operations for a period not exceeding a period of six (6) months. 
Second violation may cause revocation of necessary licenses, depending on the gravity of 
the offense as determined by court acquiring jurisdiction over the same. 
SECTION 5. Separability cluuse. - If any provision or part hereof, is held invalid 
or unconstitutional, the remainder of the law of the provision not otherwise affected shall 
remain valid and subsisting. 
SECTION 6. Repealing clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
or inconsistent with, the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SECTION 7. Effectivity clause. - This Act shall take effect fifteen (15) days after 
its publication in at least two (2) newspapers of general circulation. 
Approved 
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