NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1014
of the Bra ctarj)
■22 AUG-3 P3 :35
RtCEIVLO BV
Introduced by SENATOR CYNTHIA A. VILLAR
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS
EXPLANATORY NOTE
Many Filipinos aspire to work overseas as it translates to higher paying jobs 
that will give them an opportunity to secure a better quality of life and future for 
their families and loved ones.
Remittances are a particularly attractive source of foreign exchange because 
they are a more dependable source of funding. In 2021, cash remittances sent home 
by overseas Filipino workers (OFWs) hit a new high, reflecting the improvement in 
the global economy amid the coronavirus disease 2019 (COVID-19) pandemic.
Based on the data released by the Bangko Sentral ng Pilipinas (BSP), cash 
remittances coursed through banks rose by 5.1% to $31,418 billion in 2021 from 
$29,903 billion in 2020.1 The United States (40%) was the biggest source of 
remittances in 2021, followed by Singapore, Saudi Arabia, Japan, the UK, the United 
Arab Emirates, Canada, Taiwan, Qatar, and South Korea. These countries altogether 
account for more than three-fourths (78.9%) of cash remittances during the year. 
Meanwhile, personal remittances that include inflows in kind grew 2.9% to $3,298 
billion in 2021 from $3,205 billion in the year prior. This brought the full-year figure 
5.1% higher to a record $34,884 billion. Personai remittances in 2021 were
https://www.bworldonline.eom/top-stories/2022/02/16/430196/cash-remittances-hit-record-high-in-2021/
1


equivalent to 8.9% of the country's gross domestic product and 8.5% of the gross 
national income.
For December 2021 alone, remittances jumped 3.3% year on year to $2,987 
million, marking the 11th straight month of annual growth. Remittances usually 
surge in December as OFWs send more money back home during the holidays. 
Remittances to the Philippines have been broadly stable as the mode of money 
transfers has also shifted from cash to digital. One of the factors contributing to 
stable remittance numbers is the flow of digital transactions through formal 
channels.2
The contribution of the migrant sector to the Philippine economy is greatly 
appreciated as the inflow of the remittances from overseas Filipinos remained 
resilient despite the lingering COVID pandemic. This bill aims to lessen the burden of 
OFWs in sending remittance to their families by minimizing the amount of remittance 
fees imposed by intermediaries and deducting tax to the intermediaries based on the 
cost of services rendered to OFWs. It also mandates government agencies 
concerning OFWs to provide programs such as financial literacy to OFWs and their 
families.
In view of the foregoing, approval of this bill is earnestly recommended.
CYNTHIA A. VILLAR
1 https://www.bsp.gov.pli/Pages/MediaAndResearch/PublicationsAndReports/BRAc_DP_10 Reinitlances.pdf


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 1014
cf tl,ic
*22 AUG-3 P3 *35
R!:C!iiV DC;
Introduced by SENATOR CYNTHIA A. VILLAR
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:
1 
Section 1. Short Title. - This Act shall be known as the "Overseas Filipino
2 
Workers (OFWs) Remittance Protection Act."
3 
Sec. 2. Declaration of Policy. - The Constitution affirms that labor is the
4 
primary social economic force and mandates the State to protect the rights of the
5 
workers and promote their welfare.
6 
Recognizing the significant contribution of OFWs to the national economy
7 
through their foreign exchange remittances, the State shall adopt measures to
8 
protect the hard-earned money they remit home against usurious interest rates and
9 
exorbitant fees charged by financial institutions that deplete the value of their
10 
remittances and provide them and their families adequate education and training on
11 
financial literacy, such as financial planning and management of finances or savings,
12 
to help ensure a source of livelihood even after their overseas employment.


Sec. 3. Definition of Terms. - As used in this Act:
2 
(a) Overseas Fiiipino Worker (OFW) refers to a person who is to be engaged,
3 
is engaged or has been engaged in a remunerated activity in a state of
4 
which the person is not a citizen or on board a vessel navigating the
5 
foreign seas other than a government ship used for military or non-
6 
commercial purposes or on an installation located offshore or on the high
7 
seas; to be used interchangeably with migrant worker.
8 
(b) Remittance refers to the foreign exchange earning sent home by OFWs or
9 
their employers or agents through formal channels.
10 
(c) Remittance Fee refers to the service fee or charge imposed by bank and
11 
non-bank financial intermediaries for sending money of OFWs through
12 
formal channels.
13 
Sec. 4. AppUcabiiity of this Act - The provisions of this Act shall be applicable
14 
to all OFW remittances, whether voluntary or mandated by law, orders, issuances, or
15 
rules and regulations.
16 
Sec. 5. Discount on Remittance Fees and Tax Deduction Granted to
17 
Establishments. - Bank and non-bank financial intermediaries may impose fees for
18 
services rendered in sending money of OFWs to their immediate family members,
19 
subject to a fifty percent (50%) discount.
20 
Bank and non-bank financial intermediaries providing discounts on remittance
21 
fees may claim the discounts granted as a tax deduction based on the cost of
22 
services rendered to OFWs. The discounts granted should be treated as an ordinary
23 
and necessary expense deductible from the gross income of the intermediary falling
24 
under the category of itemized deductions: Provided, That the total deduction from
25 
the gross income of establishments providing discounts on remittance fees shall not
26 
exceed Twenty-four thousand pesos (P24,000) per OFW every taxable year:
27 
Provided, Further, that the Secretary of Finance shall, upon the recommendation of
28 
the Commissioner of Internal Revenue, issue the revenue regulation for the purpose.


1 
Sec. 6. Requirement of Posting of the Peso Equivaient of the Currency to be
2 
Exchanged. - All bank and non-bank financial intermediaries offering remittance
3 
services to OFWs shall be required to post in a conspicuous place within the
4 
establishment's premises the Philippine peso equivalent rate of the foreign
5 
currencies being transacted. The Philippine peso equivalent of the amount as
6 
remitted will be the same amount that will be received by the beneficiary of the
7 
remittance.
8 
Sec. 7. Prohibition from Raising Remittance Fess. - All banks and non-bank
9 
financial intermediaries offering remSittance services to OFWs are prohibited from
10 
raising their current remittance fees without prior consultation with the Department
11 
of Finance (DOF), Banko Sentral ng Pilipinas (BSP), and the Philippine Overseas
12 
Employment Administration (POEA).
13 
Sec. 8. Other Prohibited Acts. - The following acts are also prohibited:
14 
a) 
Misappropriation or conversion, to the 
prejudice of the OFW or
15 
beneficiary, of foreign exchange remittances received in trust, or on
16 
commission, or for administration, or under any other obligation
17 
involving the duty to make delivery of, or to return the same, or by
18 
denying having received such foreign exchange remittance;
19 
b) 
Taking of foreign exchange remittances without the consent of the
20 
OFW or beneficiary;
21 
c) 
Imposition of remittance fees in excess 
of those prescribed under
22 
Section 5 of this Act;
23 
d) 
Failure to post in a conspicuous place 
of the establishment the
24 
Philippine Peso rate of the foreign currency being transacted; and
25 
e) 
Failure to conduct consultation with the DOF, BSP, and the POEA
26 
before raising remittance fees.
27 
Sec. 9. Penaities. -


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21
22
23
24
25
26 
27
(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 four (4) years, two (2) months and one (1) day to 
eight (8) years if the amount of the remittance is over Twelve 
thousand pesos (Php 12,000.00) but does not exceed Twenty-two 
thousand pesos (Php 22,000.00);
(ii) Imprisonment of six (6) years to eight (8) years, adding one (1) 
year for each additional Ten-thousand pesos (Php 10,000.00), but 
not exceeding twenty (20) years, if the amount of the remittance is 
more than Twenty-two thousand pesos (Php 22,000.000;
(iii) Imprisonment of two (2) years and four (4) months to four (4) 
years and two (2) months, if the amount 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 amount 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 amount of the remittance does not exceed Two hundred 
pesos (Php 200.00).
(b) Any person who is found guilty of violating Section 8 (b) of this Act shall 
be punished by:
(i) Imprisonment of six (6) years and one (1) day to ten (10) years, if 
the amount of the remittance is over Twelve thousand pesos (Php 
12,000.00) but does not exceed Twenty-two thousand pesos (Php 
22,000.00);


1 
(ii) Imprisonment of ten (10) years and one (1) day to twelve (12)
2 
years, adding one (1) year for each additional Ten thousand pesos
3 
(Php 10,000.00) but 
not exceeding twenty (20) years, if the
4 
amount of the remittance exceeds Twenty-two thousand pesos
5 
(Php 22,000.00);
6 
(iii)Imprisonment of two (2) years, four (4) months and one (1) day to
7 
six (6) years, if the 
amount of the remittance is over Six (6)
8 
thousand pesos (Php 6,000.00) but does not exceed Twelve
9 
thousand pesos (Php 12,000.00); and
10 
(iv)Imprisonment of six (6) months and one (1) day to four (4) years
11 
and two (2) months, if the amount of the remittance is over Two
12 
hundred pesos (Php 200.00) but does not exceed Six thousand
13 
pesos (Php 6,000.00).
14 
(c) Any person who is found guilty of violating Section 8 (c), (d) and (e) of
15 
this Act shall be punished by an imprisonment of six (6) months and one
16 
(1) day to six (6) years and one (1) day and a fine of Fifty thousand pesos
17 
(Php 50,000.00) but not to exceeding Seven hundred fifty thousand pesos
18 
(Php 750,000.00).
19 
Aside from the criminal liability provided in the preceding paragraphs,
20 
institutions governed and supervised by the BSP found to have violated the
21 
provisions of Section 8 of this Act shall be subjected to the necessary fines,
22 
penalties, and sanctions as provided under the Republic Act No. 7653, or the "New
23 
Central Bank Act", Republic Act No. 8791, or the "General Banking Law of 2000",
24 
and other pertinent banking regulations.
25 
In case the violation is committed by a corporation or partnership, the liability
26 
shall be imposed on the president, managing director or partner, general manager,
27 
or other responsible officers of the corporation or partnership.


1 
Sec. 10. Mandatory Financial Education for OFWs and their Families. - The
2 
DOF, together with the BSP, POEA, and other agencies, shall ensure that a
3 
mandatory financial education program will be provided to OFWs and their families.
4 
The program shall include instruction on financial management, budgeting,
5 
investment options and similar topics, which shall educate the OFWs and their
6 
families in the handling of their earnings and remittances.
7 
Sec. 11. Liability under the Revised Pena! Code and Other Laws. - Prosecution
8 
under this Act shall be without prejudice to any liability for violation of any provision
9 
of the Revised Penal Code or other laws.
10 
Sec. 12. Implementing Agency. - The DOF shall, in consultation with the BSP,
11 
POEA, OWWA, DFA, Bankers Association of the Philippines, Association of Bank
12 
Remittance Officers, Inc., Philippine Association of Foreign Exchange Dealers, Money
13 
Changers and Remittance Agents, Inc., representatives from the placement of
14 
recruitment industry, non-government organizations advocating the rights and
15 
welfare of OFWs, and other stakeholders, issue the necessary rules and regulations
16 
for the effective implementation of this Act, within ninety (90) days after the
17 
approval of this Act.
18 
Sec. 13. Repealing Clause. - All laws, decrees, executive orders, issuances,
19 
rules and regulations which may be inconsistent with any of the provisions of this
20 
Act are hereby deemed repealed, amended or modified accordingly.
21 
Sec. 14. Separability Clause. - If any provision of this Act is held
22 
unconstitutional or invalid, such holding shall not affect other provisions not affected
23 
hereby.
24 
Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its
25 
publication in the Official Gazette or in a newspaper of general circulation.
26
Approved,