NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                            )
HOUSE OF REPRESENTATIVES
RECEIVED
CT03
"EL3ap
BY:-
Introduced b
resentative Rufus 8.
House Bill No.  E3i9
EXPLANATORY NOTE
The number of financial institdtions offering international money transfer services has
recently  doubled   in   view  of  intensified   international   business   transactions   of  late   and
increased remittances sent by Filipinos working abroad.
Given  these  developments,  however,  many financial  institutions  take  advantage  of
their clients by not disclosing certain crucial information 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  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) 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  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; and
(c)   the exact amount of foreign currency to be received by the recipient in the foreign
country.
This    proposed    measure    seeks    to    institutionalize    disclosure    practice    in    the
international money transfer to facilitate transparent and cost-effective transaction.
Immediate approval of this bill is earnestly sought.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                            )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus a. Rodriguez
House Bill No,  RES
AN ACT
TO  REQUIRE  CERTAIN  DISCLOSURES  IN  CONNECTION WITH  ANY INTERNATIONAL
MONEY TRANSFER AND FOR OTHER PURPOSES
Be it ep?ct.ed  by the Senate and  House of Representatives of the  Philippines in Congress
assembled:
SECTION  1.   Short ri.I/e. - This Act shall be known as the "/nternafi.ona/ Money Transfer
Disclosure Act' .
SEC 2.  Disclosures Required. -
(1)    General  Regulations -Subject to  paragraph  (2),  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 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;
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)    Good   Faith   Effort  -For  purposes  of  paragraph   (1),   good  faith   effort  requires
honesty  in  fact and  all  commercially  reasonable  efforts to  provide  the  disclosures
based   on   the   most  accurate   information   reasonably  available   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.
SEC 3.   Der7'ni.fi.on. -For purposes of this Section, the following definitions shall apply -
1.    International  Money  Transfer  -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.
2.    Money Transmitting  Business - The term  `money transmitting  business'  means
any business which:
a.    provides  check  cashing,  currency  exchange,  or  money  transmitting  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.


SEC 4.   Pena/fy. -Any financial institution that violates the disclosure requirements set forth
in  this  Act  shall  be  made  to  pay  a  fine  of  not  less  than  P50,000.00  plus  suspension  of
operations  for  a   period   not  exceeding   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.
SEC   5.      Separabi./j.fy   C/ause.   -   If   any   provision   or   part   hereof,   is   held   invalid   or
unconstitutional,  the  remainder  of  the  law  or  the  provision  not  otherwise  affected  shall
remain valid and subsisting.
SEC  6.    Rapea//.ng  C/ause.  -  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
SEC 7.   Effecfr.vt.fy. -This Act shall take effect fifteen (15) days after its publication jn at least
two (2) newspapers of general circulation.
Approved,