FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
--F 
~~~~~&~~~~ BY' 
S E N A T E  
Senate Bill No. 4 12 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The number of financial institutions 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; 
fees charged, for the remittance; and 
(b) a final itemization of all costs to the consumer, which would include all 
(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. 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
'7 JUI. -2 
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OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
Senate Bill No. 
I '  
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO REQUIRE CERTAIN DISCLOSURES IN CONNECTION WITH ANY 
INTERNATIONAL MONEY TRANSFER AND FOR OTHER PURPOSES 
Be if enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "lnfernational 
Money Transfer Disclosure AcP'. 
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 charges 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 (I), 
good faith effort 
requires honesty in fact and all commercially reasonable efforts to 
provide the disclosures based on the most accurate information 
reasonable 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. Definition. - 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. Penalty. - Any financial institution that violates the disclosure 
requirements set forth in this Act shall be made to pay a fine not less than 
P50,OOO.OO plus suspension of operations for a period of not exceeding a period 
of 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. Separability Clause. - 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 6. Repealing Clause. - 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. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved,