Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
EXPLANATORY NOTE 
Overseas Contractual Workers used to be the term for Filipinos who worked 
abroad. Under the presidency of the late Fidel V. Ramos, he ushered in a new term 
and called them “Overseas Filipino Workers”. This is in recognition of what they bring 
to the Philippine economy, as well as to highlight that these workers should be proud 
of their work as Filipinos. 
Recognizing their important contribution to Philippine growth and economy, 
this measure seeks to give discounts to Overseas Filipino Workers on remittance fees 
and as well as granting them discounts on specific establishments. To help them and 
their families as well in regards to financial literacy, the measure seeks to make the 
Department of Finance and the Bangko Sentral ng Pilipinas work together to provide 
a mandatory financial education program that would benefit the OFWs and their 
families. 
In the 18th Congress, this bill was filed by Rep. Gonzales. It was approved on 
Third reading and was subsequently submitted to the Senate for their consideration. 
In view of the foregoing, the passage of the bill is earnestly sought. 
HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am
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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _____ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
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: 
SECTION 1. Short Title. — This Act shall be known as the “Overseas Filipino 
Workers (OFWs) Remittance Protection Act.” 
SECTION 2. Declaration of Policy. — The Constitution affirms 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 
their 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. 
SECTION 3. Definition of Terms. — As used in this Act: 
(a) Overseas Filipino Worker (OFW) 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
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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. 
(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. 
SECTION 4. SEC. 4. Applicability of this Act. — The provisions of this Act shall be 
applicable to all OFW remittances, whether voluntary or mandated by law, orders, 
issuances, or rules and regulations. 
SECTION 5. Discount on Remittance Fees and Tax Deduction Granted to 
Establishments. — Bank and non-bank financial intermediaries may impose fees for 
services rendered in sending money of OFWs to their immediate family members, 
subject to a fifty percent (50%) discount. 
Bank and non-bank financial intermediaries providing discounts on remittance fees 
may claim the discounts granted as a tax deduction based on the cost of services 
rendered to OFWs. The discounts granted should be treated as an ordinary and 
necessary expense deductible from the gross income of the intermediary falling 
under the category of itemized deductions: Provided, That the total deduction from 
the gross income of establishments providing discounts on remittance fees shall not 
exceed Twenty-four thousand pesos (P24,000) per OFW every taxable year: Provided, 
Further, that the Secretary of Finance shall, upon the recommendation of the 
Commissioner of Internal Revenue, issue the revenue regulation for the purpose. 
SECTION 6. Requirement 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 will be 
the same amount that will be received by the beneficiary of the remittance. 
 
SECTION 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 Philippine Overseas 
Employment Administration (POEA). 


SECTION 8. Other 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; 
(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 POEA before raising 
remittance fees. 
SECTION 9. Penalties. — 
(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 
(Php22,000.00); 
(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); 
(ii) Imprisonment of ten (10) years and one (1) day to twelve (12) 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 exceeds Twenty two thousand pesos 
(Php22,000.00);  
(iii) Imprisonment of two (2) years, four (4) months and one (1) day to six (6) 
years, 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); and  
(iv) Imprisonment of six (6) months and one (1) day to four (4) years and two 
(2) 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  
(c) Any person who is found guilty of violating Section 8 (c), (d) and (e) of this Act 
shall be punished by an imprisonment of six (6) months and one (1) day to six (6) years 
and one (1) day and a fine of Fifty thousand pesos (Php 50,000.00) but not exceeding 
Seven hundred fifty thousand pesos (Php 750,000.00). 
Aside from the criminal liability provided in the preceding paragraphs, 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 the 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. 
SECTION 10. Mandatory Financial Education for OFWs and their Families. — The 
DOF, together with the BSP, POEA, and other agencies, shall ensure that a mandatory 
financial education program will be provided to OFWs and their families. 


The program shall include instruction on financial management, budgeting, 
investment options and similar topics, which shall educate the OFWs and their 
families in the handling of their earnings and remittances. 
SECTION 11. Liability under the Revised Penal 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. 
SECTION 12. Implementing Agency. — The DOF shall, in consultation with the BSP, 
POEA, Overseas Workers Welfare Administration, 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 placement or recruitment industry, 
non-government organizations advocating the rights and welfare of OF Ws, and 
other stakeholders, issue the necessary rules and regulations for the effective 
implementation of this Act, within ninety (90) days after the approval of this Act. 
SECTION 13. Repealing 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. 
SECTION 14. Separability Clause. — If any provision of this Act is held 
unconstitutional or invalid, such holding shall not affect other provisions not affected 
thereby. 
SECTION 15. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved.