TWEENTIETH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL-7 '\10:28
S. No
SENATE 
181
Intrcxjuced by SENATOR CAMILLE VILLAR
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS
EXPLANATORY NOTE
Overseas Filipino Workers, our "OFWs", are rightly hailed as modern-day 
heroes. Through their sacrifice, hard work, and perseverance, they have become a 
lifeline to millions of Filipino families and a true pillar of the Philippine economy. In the 
year 2023 alone, OFW remittances reached over USD37.2 billion, sustaining millions 
of Filipino families, providing for daily household consumption, education, healthcare, 
entrepreneurship, and even contributing to national economic stability.
However, despite their immense contributions, OFWs continue to face 
structural and organizational challenges when sending their hard-earned money 
home. Excessive remittance fees, hidden charges, currency conversion discrepancies, 
and limited access to financial literacy programs diminish the value of their remittances 
and expose them and their families to exploitation and risk of financial insecurity.
This bill seeks to institutionalize a framework of protection and empowerment 
of OFWs and their beneficiaries by mandating several key reforms:
(1) A mandatory 50% discount on remittance service fees for money sent by OFWs 
to their immediate families, with corresponding tax deductions for compliant 
remittance service providers;
(2) Transparent and standardized posting of currency ©{change rates to prevent 
undervaluation of remittances;
(3) Prohibition against arbitrary increase in remittance fees without prior 
consultation with key government agencies;


(4) Penal provisions against misappropriation, unauthorized deductions, and other 
abusive practices involving OFW remittances;
(5) Comprehensive, free financial literacy education for OFWs and thar families, to 
be integrated into pre-departure and post-arrival orientation programs and 
continuously supported through online platforms and barangay-level 
engagement.
Moreover, this measure empowers the Department of Migrant Workers (DMW), 
in coordination with other government agencies, to lead the Implementation of robust 
protections for OFWs against fraudulent schemes. Irresponsible borrowing, and 
financial management.
Along with recognizing OFWs economic contributtons, they must also be 
protected, empowered, and educated to ensure that the fruits of their labor create 
long-term prosperity for themselves and their families. The remittances they send back 
home is not just money; it is the product of years of sacrifice, love, and labor across 
vast lands and oceans.
In view of the foregoing, the immediate passage of this measure is earnestly
sought.
CAMILLE VILLAR


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S. No.
SENATE
181
25 JiJL -7 filO -28
Introduced by SENATOR CAMILLE VILLAR
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
ARTICLE I
GENERAL PROVISIONS
Section 1. Short We. - This Act shall be known as the "Overseas Filipino 
Workers (OFWs) Remittance Protection Act".
SEC. 2. Declaration of Policy. - The Constitution affinns 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.


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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 earnings sent home by OFWs or 
their employers or agents through formal channels; and
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(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
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to all OFW remittances, whether voluntary or mandated by law, orders, issuances, or
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rules and regulations.
SEC. 5. Discount on R&nittance 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.


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SEC. 6. Requir&nent 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;
(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;
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(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 DMW before 
raising remittance fees.


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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 (PhP50,000.00) but not 
exceeding Seven Hundred Fifty Thousand Pesos (PhP750,000.00).
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 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 tiieir 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.


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As such, ail 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 OWWA, the DOF, the BSP, the Department of the Interior and Local 
Government and all 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 or literacy; 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


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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 Pena! 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, 0\NWAf 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 placonent or recruitment industry, non-government organizations 
advocating the rights and welfare of OFWs, and other stakeholders. Issue the
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necessary rules and regulations for the effective implementation of this Act, within
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ninety (90) days after the approval of this Act.
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SEC. 13. Regaling 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 Offidal Gazette or In a newspaper of general circulation.
Approved,