EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
S.B. No. 1363
ot ii)f
20 
FEB ^8 P 3 -A3
RECti i D 5/ '  
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INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS FILIPINO 
WORKERS (OFWs), AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The State recognizes the significant contribution of Overseas Filipino Workers (OFWs) to 
the national economy through their foreign exchange remittances. According to Bangko Sentral ng 
Pilipinas, the personal remittances from Overseas Filipinos totaled US$22 billion for the first months 
of 2019, an increase of 3.6 percent from the previous year’s US21.2 billion. This makes the Philippines 
as the 4th largest remittance destination in the world with.
These OFW remittances are transmitted from the OFWs to the intermediaries, such as 
financial and non-bank financial institutions, before it reaches beneficiaries. In the course of the 
transfer of the funds, the amount remitted is subjected to several fees and high remittance charges 
which result to great reduction of the amount supposed to be received by beneficiaries.
With the high remittance charges on the hard-earned wages of OFWs, which should 
instead be enjoyed by them and their families, it is imperative for the government to safeguard 
these remittances from usurious interest rates and fees charged by financial institutions. Hence, there 
is a need to provide effective safeguards to further protect the rights and interests of OFWs ■with 
respect to their foreign exchange remittances pursuant to the State’s mandate.
In view of the foregoing, approval of this measure is earnestly sought.
EMMAN
ACQUIAO


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B.No. 1363
^5*, 
Senate
ot tljr fe fc i fta rp
20 
FEB 18 
P 3--43
4
INTRODUCED BY: SENATOR EMMANUEL D. pl^^lJ^A O
4
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS (OEWs), AND EOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Overseas Filipino Workers (OFWs) 
Remittance Protection Act."
SEC. 2. Declaration of Policy. -  It is the policy of the State to uphold the dignity of all its 
citizens, whether residents of the Philippines or overseas. The State further affords full 
protection to labor, local and overseas, organized and unorganized and shall promote full 
employment and equality of employment opportunities for all. Toward this end, the State shall 
protect its citizens from fraudulent acts of remittance agents and money transfer companies.
SEC. 3. Definition o f 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 offshore or on the high 
seas; to be used interchangeably with migrant worker.
(b) "Overseas Filipino Workers' (OFW) Remittance" refers to the foreign exchange 
earnings sent home by overseas Filipinos working abroad or their employees or agents 
through formal channels.
(c) Remittance Fee" is defined as the service fee or charge imposed by financial 
intermediaries and non-bank financial intermediaries for sending money of OFWs 
through formal chamiels.


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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. Discounts on Remittance Fees and Discounts Granted to Establishments. - Financial 
intermediaries and non-bank financial intermediaries may impose fees for services 
rendered in sending money of OFWs to their immediate family members, subject to the 
following discounts.
Amount to be Remitted
Discount
Not more than LJSD 500 or its equivalent to other 
currencies
50% of the remittance fee
USD 500 - not more than USD 1,000 or its equivalent
40% of the remittance fee
USD 1,000 
not more than USD 1,500 or its
Equivalent
30% of the remittance fee
USD 1,500 - 
not more than USD 2,000 or its 
equivalent
20% of the remittance foe
More than USD 2,000 or its equivalent in other 
currencies
1 0% of the remittance fee
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All establishments 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 to OFWs by financial or non-bank financial intermediaries shall be treated as an 
ordinary and necessary expense deductible from the gross income of the seller falling 
under the category of itemized deductions. This will make the tax deduction mandatory 
and thus provide incentives for remittance establishments to provide the discounts.
In lieu of the tax deductions allowed in the preceding paragraph, financial and non­
bank financial intermediaries may elect a standard deduction in an amount not exceeding 
forty percent (40%) of its gross income. 
Otherwise, these intermediaries shall be 
considered as having availed of the above-mentioned tax deductions.
SEC. 6. Requirement of Posting of the Peso Equivalent of the Currency to be Exchanged. - All 
financial intermediaries 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 to be remitted will be the 
same amount that will be received by the beneficiary of the remittance.
SEC. 7. Prohibition from Raising Remittance Fees - All financial intermediaries and non­
bank financial intermediaries offering remittance services to OFWs are prohibited from


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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).
SFXH 8. Prohibited Acts. - The following acts are hereby 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; and
(d) Failure to post in a conspicuous place of the establishment the Philippine Peso rate 
of the foreign currency beingtransacted.
(e) Failure to conduct consultation with the DOF, BSP, and the POEA before raising 
remittance fees.
SEC. 9. Penalties. -
(a) Any person who will be found guilty of violating the provisions of Section 8 (a) 
hereof shall be punished by:
(i) Imprisonment of four (4) years, two (2) months and one (1) day to eight 
(8) 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); and if such amount exceeds the latter sum, the penalty shall be 
imprisonment of six (6) years or eight (8) years, adding one (1) year for 
each additional Ten Thousand Pesos (Php 10,000.00), but the total penalty 
which may be imposed shall not exceed imprisonment of twenty (20) years;
(ii) 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);
(iii) 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


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Pesos (Php 200.00)but does not exceed Six Thousand Pesos (Php 6,000.00); 
and
(iv) Imprisonment of two (2) months and one (I) day to six (6) months, if the 
value of the remittance does not exceed Two Hundred Pesos (Php 200.00).
(b) Any person who will be foimd guilty of violating the provisions of Section 8
(b) hereof shall be published by:
(i) Imprisonment of six (6) years and one (I) 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); and if 
such amount exceeds the latter sum, the penalty shall be imprisonment of 
ten (10) years and one (I) day to twelve (12) years, adding one ( 1) year for 
each additional Ten Thousand Pesos (Php 10,000.00) but the total penalty 
which may he imposed shall not exceed imprisonment of twenty (20)years;
(ii) Imprisonment of two (2) years, four (4) 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
(iii) 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 will be found guilty of violating the provisions of Section 8 
(c), (d) and (e) hereof shall be subject to a fine of Fifty Thousand Pesos (Php
50.000. 00) but not exceeding Seven Hundred Fifty Thousand Pesos (Php
750.000. 00) and imprisonment of six (6) months and one (1) day to six (6) years 
and one (1) day.
Aside from the criminal hability provided in the aforementioned paragraphs, institutions 
governed and supervised by the Bangko Sentral ng Pilipinas (BSP) found to have 
committed violations of Section 8 hereof shall be subjected to the necessary fines, 
penalties, and sanctions as provided under the New Central Bank Act, General Banking 
Law of 2000, and other pertinent banking regulations.
In case of corporations or paltnerships, 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


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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 fmancial 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.
SEC. 11. Liability under the Revised Penal Code and Other Laws. - Prosecution wider this 
Act shall be without prejudice to any liability for violation of any provision of the Revised 
Penal Code or any 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), shall, within ninety (90) days after the approval of 
this Act, issue the necessary rules and regulations for its effective implementation.
SEC. 13. Repealing Clause. - All laws, rules or regulations that are inconsistent with the 
provisions of this Act are hereby repealed oramended 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,