NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES

1190

House Bill No.

Introduced by Representative Christian Tell A. Yap

EXPLANATORY NOTE

Overseas Filipino Workers (OF Ws) are the modern-day heroes of our nation. They leave the
country in search for better-paying jobs in foreign lands to provide for their families: they leave behind.
Pursuant to the mandate of the State to promote the rights of all workers whether domestic or overseas,
it is necessary that the money that OF Ws send to their families are well protected against exorbitant
charges by the money transfer industry.

According to the latest data as of March 7, 2022 from the Philippine Statistics Authority, 1.77
million Overseas Filipino Employees (OFWs) o Filipino workers are working overseas during the
period of April to September 2020.

‘The income that OFW receive from their foreign employers are transferred through bank and
non-bank financial institutions for the benefit of their families here in the Philippines. In compensation
to their service, these financial institutions impose money-transfer fees and charges which in effect
teduces the amount received by the families of OFWs relying on these remittances

It is in the best interest of the State to protect all OFWs and their families by requiring
intermediary financial institutions to actively disclose their service fees ensuring that these third-party

service providers are following proper and just practices under the law.

In view of foregoing reasons, the approval of this bill is earnestly soyght.



NINETEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bilt Nol 190

Introduced by Representative Christian Tell A. Yap

AN ACT
PROTECTING THE REMITTANCES OR MONEY TRANSFERS OF OVERSEAS
FILIPINO WORKERS (OFWs) BY REQUIRING THE DISCLOSURE OF FINANCE
CHARGES AND OTHER FEES IN CONNECTION WITH MONEY TRANSFER,
COMPELLING STRICT ADHERENCE TO THE TERMS AND CONDITIONS OF THEIR
TRANSFER, PENALIZING VIOLATIONS THEREOF, AND FOR OTHER PURPOSES

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 “Remittance Act."

3 SEC. 2. Declaration of Policy. - \t is hereby declared the policy of the State to protect
4 its citizens from deceptive, unfair, and unconscionable acts of remittance agents and money
3. transfer companies. Toward this end, they shall be required to render full disclosure of the terms
6 and costs of the money transfer service being offered by them and to strictly adhere to the terms
7. and conditions of the said transfer or remittance

8
9 SEC. 3. Definition of Terms.- For purposes of this Act, the following terms shall mean:
10 (a) Exchange Rate - the price of a unit of foreign currency in terms of the domestic
u currency,

2 (b) Money Transfer moving money electronically or physically for a specified account
3 or person;

4 (c) Remittance - the funds that an expatriate sends to the expatriate’s country of origin
1S via wire, mail, or online transfer;

16 (d) Remitiance Agents and Companies - persons or entities that offer to remit, transfer,
7 or transmit money on behalf of any person to another person and/or entity. These
18 shall include money or cash couriers, money transfer agents, remittance companies,
9 and the like; and

20 (©) Price Gouging - charging unconscionably high prices or fees that are excessive
2 relative to what the free market offers.

2

3 SEC. 4. Strict Adherence. - All remittance agents and companies shall strictly adhere to
24 the following

25 (a) Registration. - Remittance agents and companies providing the transfer mechanism
26 shall be duly registered, licensed, and must have met all the requirements issued by
27 the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission
28 (SEC), Department of Trade and Industry (DTI), and the Bureau of Internal

2» Revenue (BIR).


1 (b) Exchange Rates and Fees.

1) All remittance agents and companies shall follow the exact real time

3 exchange rate at the beginning of the business day as posted in the
4 Reference Exchange Rate Bulletin of the BSP

3 2) For senders from the Philippines, a flat rate transaction fee shall be imposed
6 in accordance with rules and regulations to be issued by the BSP

1 (c) Disclosure. - In addition to standard paperwork, remittance agents and companies
8 shall be required to include a waiver form for each transaction which shall contain
9 the following information in clear and concise words:

0 1) The specific exchange rate provided for that currency:

u 2) Any and all additional fees being deducted from the original remittance;

R 3) A signed acknowledgment that the recipient understands that the recipient is
8 accepting currency exchange from the original currency to Philippine Peso,
iW forfeiting a percentage equivalent to the flat rate fee for the remittance
S service,

16 4) Notice to senders and recipients that senders are generally not permitted to
0 require that the money transfer be made in the form of original currency,
Is except in the specific countries where senders are given the option of
ry specifying the money to be received in original currency form without any
» additional exchange rates compensation being charged to the sender; and

5) The list of countries, as determined by the BSP, which give the option to
require that money transferred be paid out to the recipient in the original

2B currency sent
4 (d) Valid Identification - Senders and recipients must each provide at least one (1) form
25 of valid and legally acceptable identification.

26 (e) Request for Original Currency ~ Remittance agents and companies receivi
2 remittances from countries which give the option to specify that original currency
2s be paid out to recipient shall, in addition to the conditions enumerated above. be
» required to adhere to the contractual commitment entered into by the remittance
w agent and the sender.

f In cases where only Philippine currency is available and thus paid out to recipients in
2 direct contradiction of the sender's specified currency or the currency of the originating country,
3 remittance agents companies shall be required to obtain an additional waiver from the recipient
4 that the recipient is waiving the right to receive the specified currency

38 SEC. 5. Punishable Acts. - The following acts committed by the remittance agents and
36 companies, and/or all of its employees, shall be punishable under this Act

37 (a) Failure to comply with the provisions of this Act,

® (b) Price gouging of currency exchange rates, and

(c) Substituting Philippine Peso for the specified original currency without the express

40 or written consent of the recipient


SEC. 6. Penalties. - Any person, or in case of partnership or corporation, the managing

1

2 partner or the president, committing any of the unlawful acts or omissions provided under this
3 Act shall be punished with imprisonment of not less than six (6) years but not more than ten (10)
+ years and a fine of not less than Two Hundred Thousand Pesos (P200,000.00) but not more than
5 One million pesos (P1,000,000.00).

6 SEC. 7. Restitution. - In addition to the penalties provided herein, any person found

7 guilty of violating this Act shall be required to make restitution payments upon determination by
8 the BSP or other governing judicial authority that a remittance agent has willfully acted to avoid
9 compliance and/or charged rates in excess of the prescribed standards in this Act. All recipients
10 shall consequently reserve and retain their right to collect the excessive amount proven to have
11 been charged to them

2 SEC. 8. Enforcement and Monitoring. - Aside from the BSP's Manual of Regulations
13, for Non-Bank Financial Institutions, the entire money transfer industry shall be under further
14 guidance, requirements, and rules prescribed by the BSP. The BSP shall likewise periodically

15 monitor compliance by remittance agents and companies of the provisions of this Act

6 SEC, 9. Rules and Regulations. - The BSP shall prescribe the necessary rules and
17 regulations to effectively implement the provisions of this Act within ninety (90) days from the
I effectivity of this Act

» SEC, 10. Separability Clause. \f any provision of this Act is declared invalid or
20 unconstitutional, the other provisions not affected by such declaration shall remain in full force
2t_ and effect.

2 SEC, 11, Repealing Clause. - All laws, executive and administrative orders, rules and
23 regulations inconsistent with the foregoing provisions are hereby repealed or modified
24 accordingly

2s SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
26 the Official Gazette or in a newspaper of general circulation

Approved,