TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
1074
m *eturtf
•( njf »f(r(
25 AUG -6 P4 35
RECEIVE! fV:
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR PROTECTION OF THE REMITTANCES OF OVERSEAS 
FILIPINO WORKERS
EXPLANATORY NOTE
In 2024, overseas Filipino workers (OFWs) sent a record $38.34 billion in 
remittances to the Philippines, representing a 3% increase from the $37.21 billion they 
sent in 2023. These remittances accounted for 8.3% of the country's gross domestic 
product and 7.4% of the gross national income, signifying the importance of 
remittances to the local economy.
These remittances are an important driver for economic growth especially with 
regard to consumer spending.
This measure aims to safeguard the hard-earned money sent by the OFWs to 
their families against potential exploitation or unfair practices that effectively diminish 
the value of their remittances. It also provides OFWs and their families adequate 
education and training on financial literacy, such as financial planning and 
management employment.


Under this bill, remittances fees imposed by banks and non-bank financial 
intermediaries on OFW remittances to their immediate family members shall be 
subject to a 50% discount. Bank and non-bank financial intermediaries providing 
discounts on remittance fees, meanwhile, 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.
This bill also prohibits the following acts: using or keeping foreign exchange 
remittances meant for an OFW or beneficiary without permission, or denying they 
were received; taking foreign exchange remittances without the OFW's or beneficiary's 
consent; charging remittance fees higher than what the law allows; not displaying the 
exchange rate for Philippine Peso clearly in the establishment, and raising remittance 
fees without first consulting the appropriate government agencies.
As such, immediate approval of this measure is fervently sought.
NGGOY E3ERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. NO. 1074
J^nate
25 WJG-6 P4 35
AECEIVEIIV:
Introduced by Senator Jinggoy Ejercito Estrada
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:
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Section 1. Short Title. - This Act shall be known as the "Overseas Filipino
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Workers (OFWs) Remittance Protection Act'.
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Sec. 2. Declaration of Policy. - The Constitution affirms that labor is the primary
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social economic force and mandates the State to protect the rights of the workers and
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promote their welfare.
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Recognizing the significant contribution of OFWs to the national economy
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through their remittances, the State shall adopt measures to protect their hard-earned
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money, monitor or regulate institutions that deplete the value of their remittances and
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provide them and their families adequate education and training on financial literacy,
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such as financial planning and management employment.
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Sec. 3. Definition of Terms. - As used in this Act:
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a) Overseas Filipino worker (OFW) refers to a person who is to be engaged, is
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engaged or has been engaged in a remunerated activity in a state of which
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the person is not a citizen or on board a vessel navigating the foreign seas
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other than a government ship used for military or non-commercial purposes


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or on an installation located offshore or on the high seas; to be used
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interchangeably with migrant worker;
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b) Remittance refers to the foreign exchange earnings sent home by OFWS or
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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
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non-bank financial intermediaries for sending money of OFWS through
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formal channels.
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Sec. 4. Appiicabiiity 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.
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Sec. 5. Discount on Remittance Fees and Tax Deduction Granted to
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Establishments. - Fees imposed by banks and non-bank financial intermediaries on
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OFW remittances to immediate family members shall be subject to a fifty percent
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(50%) discount.
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Bank and non-bank financial intermediaries providing discounts on remittance
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fees may claim the discounts granted as tax deduction based on the cost of services
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rendered to OFWs to be treated as ordinary and necessary expense deductible from
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the gross income of the intermediary falling under the category of itemized
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deductions: Provided, That the Secretary of Finance shall, upon the recommendation
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of the Commissioner of Internal Revenue, issue the pertinent revenue regulation for
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the purpose.
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Sec. 6. Requirement of Posting of the Peso Equivalent of the Currency to be
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Exchanged. - All bank and non-bank financial intermediaries offering remittance
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services to OFWs shall be required to post in a conspicuous place within the
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establishment's premises the Philippine peso equivalent rate of the foreign currencies
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being transacted. The Philippine peso equivalent of the amount as remitted shall be
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the same amount that shall be received by the beneficiary of the remittance.
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Sec. 7. Prohibition from Raising Remittance Fees. - All banks and non-bank
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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
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of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), and the Department of Migrant
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Workers (DMW).


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Sec. 8. Prohibited Acts. - The following acts are also prohibited:
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a) Misappropriation or conversion, to the prejudice of the OFW or beneficiary,
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of foreign exchange remittances received in trust, or on commission, or for
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administration, or under any other obligation involving 
the duty to make
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delivery of, or to return the same, or by denying having 
received such
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foreign exchange remittance;
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b) Taking of foreign exchange remittances without the consent of the OFW or
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beneficiary;
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c) Imposition of remittance fees in excess of those prescribed under Section 5
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of this Act;
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d) Failure to post in a conspicuous place of the establishment the Philippine
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Peso rate of the foreign currency being transacted; and
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e) Failure to conduct consultation with the DOF, BSP, and the DMW before
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raising remittance fees.
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Sec. 9. Penaities. - Any person who is found guilty of any of the acts described
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in Section 8 hereof shall be punished by an imprisonment of six (6) months and one
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(1) day to six (6) years and a fine of Fifty thousand pesos (P50,000.00) but not
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exceeding Seven hundred fifty thousand pesos (P750,000.00).
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Aside from the criminal liability provided in the preceding paragraph,
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institutions governed and supervised by the BSP found to have violated the provisions
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of Section 8 of this Act shall be subjected to the necessary fines, penalties, and
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sanctions as provided under Republic Act No. 7653, or "The New Central Bank Act",
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Republic Act No. 8791, or "The General Banking Law of 2000", and other pertinent
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banking regulations.
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In case where the violation is committed by a corporation or partnership, the
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liability shall be imposed on the president, managing director or partner, general
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manager, or other responsible officers of the corporation or partnership.
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Sec. 10. Free Mandatory Financiai Education for OFWs and their Famines. - The
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DMW as the lead agency, in coordination with the Overseas Workers Welfare
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Administration (OWWA), the DOF, and the BSP, shall ensure that a mandatory
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financial education program shall be extended to OFWs and their families.


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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 shall 
be provided to OFWs and their families.
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.
As such, all 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.


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As the lead agency, the DMW is tasked to formulate training modules on
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financial education or literacy; initiate and conduct training programs on financial
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management and responsibility; apprise OFWS on financial opportunities and pitfalls,
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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
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promote financial education (literacy) among OFWs and their dependents.
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Sec. 11. Liability under the Revised Pena! Code and Other Laws. - Prosecution
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under this Act shall be without prejudice to any liability for violation of any provision 
.9 of the Revised Penal Code or other laws.
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Sec. 12. Implementing Agency. - The DMW shall, in consultation with the BSP,
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DOF, OWWA, Department of Foreign Affairs, Bankers Association of the Philippines,
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Association of Bank Remittance Officers, Inc., Philippine Association of Foreign
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Exchange Dealers, Money Changers and Remittance Agents, Inc., representatives
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from the placement or recruitment industry, non-government organizations
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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. Repealing Clause. - All laws, decrees, executive orders, issuances, rules
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and regulations which may be inconsistent with any of the provisions of this Act are
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hereby deemed repealed, amended or modified accordingly.
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Sec. 14. Separability Clause. - If any provision of this Act is held unconstitutional
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or invalid, such holding shall not affect other provisions not affected thereby.
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Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
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Approved,