NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regulnr Session 
)
SENATE
S. No. 10
V #ffiCP of tl)f
72 JUL-4 A 8 32 
,
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Introduced by Senator Loren B. Legarda
AN ACT
PROVIDING EOR PROTECTION OF THE REMITTANCES 
OF OVERSEAS FILIPINO WORKERS
EXPLANATORY NOTE
The State recognizes the significant contribution of Overseas Filipino Workers 
(OFWs) to the national economy through their foreign exchange remittances.
According to Bangko SentraJ ng Pilipinas (BSP), cash remittances sent through 
banks from Filipinos abroad stood at $2.59 billion in March 2022, an increase from 
$2.51 billion in the same month in the prior year. Meanwhile, personal remittances 
grew 2.9%, or from $3,205 billion in 2021 to $3,298 billion in March 2022. BSP also 
disclosed that personal remittances in 2021 constitute 8.9% of the gross domestic 
product of the country and 8.5% of its gross national income.
In 2021, the World Bank reported that the Philippines is the 4th largest 
remittance destination in the world.
Remittances have proven their resilience amid the pandemic and other crises 
as they remain a growth driver for domestic economy. They continue to fuel the 
growth of consumer spending or household consumption, which economists account 
for at least 75% of the economy.


These OFW remittances are transmitted by the OFWs to bank and non-bank 
financial institutions before it reaches beneficiaries. In the course of the transfer of the 
sums of money, the amount rem itted is subjected to various fees and excessive charges 
which result in a huge cutback of the amount supposed to be received by beneficiaries. 
With the unreasonable remittance fees and charges on the hard-earned wages of 
OFWs, it is imperative for the government to protect the money transfers from 
usurious interest rates and fees charged by financial institutions.
In this regard, this bill seeks to provide safeguards to protect the foreign 
exchange remittances of OFWs without causing prejudice to the interests of the bank 
and non-bank financial intermediaries by: (1) setting a limit on the amount of 
remittance fees and charges to be enforced by intermediaries, (2) providing up to fifty 
percent (50%) discount to OFWs sending money to their immediate family members, 
and (3) granting tax deduction to the intermediaries that provided discounts on 
remittance fees.
The proposed measure also mandates concerned government agencies such as 
the Department of Finance, BSP, Philippine Overseas Employment Administration 
(POEA), and other agencies, to conduct financial educab'on programs to OFWs and 
their families. Penalties for violation of any of the prohibited acts enumerated under 
the bill are likewise outlined therein.
In view of the foregoing, approval of this measure is earnestly sought.
REN LEGARDA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. AT
fecnnic
o( Il)e^tTTr-ri>
72 JUL-4 A 8 32
HlTEiVH) l»V:
Introduced by Senator Loren B. Legarda
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 of 2022."
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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. The State recognizes the significant contribution of OFWs to
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the national economy through their foreign exchange remittances. In this regard, the
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State shall adopt effective measures to protect their hard-earned money remitted
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home against usurious interest rates and exorbitant fees charged by financial
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institutions.
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Sec. 3. Definition of Terms. - For purposes of this Act, the following terms shall
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be defined as follows:
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(a) 
" Overseas Filipino Worker" refers to a person who is to be engaged,
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is engaged, or has been engaged in a remunerated activity in a state of
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which he or she is not a citizen or on board a vessel navigating the
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foreign seas other than a government ship used for military or non-
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commercial purposes or on an installation located offshore or on the
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high seas; to be used interchangeably with migrant worker.


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(b) 
" Remittance" refers to the foreign exchange earnings sent home
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by OFWs or their employees or agents through formal channels.
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(c) "Remittance Fee" refers to the service fee or charge imposed by
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bank and non-bank financial intermediaries for the sending money of
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OFWs through formal channels.
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Sec. 4. Applicability of this Act. - The provisions of this Act shall apply to all
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OFW remittances, whether voluntary or mandated by law, orders, issuances or rules,
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and regulations.
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Sec. 5. Discounts on Remittance Fees and Discounts Granted to Establisliments.
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- Bank and non-bank financial intermediaries may impose fees for seiwices rendered
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in sending money of OFWs to their immediate family members, subject to a fifty
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percent (50 %) discount.
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Bank and non-bank financial intermediaries providing discounts on
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remittance fees may claim the discounts granted as a tax deduction based on
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the cost of services rendered to OFWs. The discounts granted should be treated
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as an ordinary and necessary expense deductible from the gross income of the
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intermediary falling under the category of itemized deductions: Provided, That
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the total deduction from the gross income of establishments providing
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discounts on remittance fees shall not exceed twenty-four thousand pesos (Php
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24,000.00) per OFW every taxable year: Provided, further, that the Secretary of
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Finance shall, upon the recommendation of the Commissioner of Internal
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Revenue, issue the revenue regulation for 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 will be
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the same amount that will be received by the beneficiary of the remittance.
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Sec. 7. Prohibition from Raising Remittance Fees. - All bank and non-bank
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financial intermediaries offering remittance sendees 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 Philippine Overseas
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Employment Administration (POEA).
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Sec. 8. Other Prohibited Acts. - The following acts are also prohibited:
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(a) 
Misappropriation or conversion, to the prejudice of the
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OFW or beneficiary, of foreign excliange remittances received in trust,
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or on commission, or for administration, or under any other obligation
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involving the duty to make delivery of, or to return the same, or by
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denying having received such foreign exchange remittance;
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(b) 
Taking of foreign exchange remittances without the
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consent of the OFW or beneficiary;
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(c) Imposition of remittance fees in excess of those prescribed
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under Section 5 of this Act;
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(d) 
Failure to post in a conspicuous place of the establishment
] 4 
the Philippine Peso rate of the foreign currency being transacted;
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and
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(e) 
Failure to conduct consultation with the DOF, BSP, and the
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POE A before raising remittance fees.
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Sec. 9. Penalties.-
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(a) 
Any person who is found guilty of any of the acts
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described in Section 8 (a) hereof shall be punished by:
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(i) 
Imprisonment of six (6) years to eight (8) years, if
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the amount of the remittance is more than Twenty-Two
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Thousand Pesos (Php 22,000.00); adding one (1) year for
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each additional Ten Thousand Pesos (Php 10,000.00), but
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not exceeding twenty (20) years;
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(ii) 
Imprisonment of four (4) years, two (2) months, and
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one (1) day to six (6) years if the value of the remittance is
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over Twelve Thousand Pesos (Php 12,000.00) but does not
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exceed Twenty-Two Thousand Pesos (Php 22,000.00);
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(iii) 
Imprisonment of two (2) years and four (4) months
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to four (4) years and two (2) months, if the value of the


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remittance is over Six Thousand Pesos (Php 6,000.00) but 
does not exceed Twelve Thousand Pesos (Php 12,000.00);
(iv) 
Imprisomnent of four (4) months and one (1) day to 
two (2) years and four (4) months, if the value 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 value of the remittance does not 
exceed Two Hundred Pesos (Php 200.00).
(b) 
Any person who is found guilty of violating Section 8 (b) 
hereof shall be punished by:
(i) 
Imprisonment of ten (10) years and one (1) day to 
twelve (12) years, if the amount of the remittance exceeds 
Twenty-Two Thousand Pesos (Php 22,000.00); adding one 
(1) year for each additional Ten Thousand Pesos (Php 
10,000.00), but not exceeding twenty (20) years;
(ii) 
Imprisonment of six (6) years and one (1) day to ten 
(10) years, if the value of the remittance is over Twelve 
Thousand Pesos (Php 12,000.00) but does not exceed 
Twenty-Two Thousand Pesos (Php 22,000.00);
(hi) Imprisomnent of four (4) years, two (2) months, and 
one (1) day to six (6) years, if the value 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 tvm (2) months, if the value of the 
remittance is over Two Hundred Pesos (Php 200.00) but 
does not exceed Six Thousand Pesos (Php 6,000.00).
(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


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a fine of Fifty Thousand Pesos (Php 50,000.00) but not exceeding
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Seven Plundred Fifty Thousand Pesos (Php 750,000.00).
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Aside from the criminal liability provided in the preceding paragraphs,
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institutions governed and supervised by the Bangko Sentral ng Pilipinas (BSP)
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found to have committed violations of Section 8 of this Act shall be subjected
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to the necessary fines, penalties, and sanctions as provided under the Republic
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Act No. 7653, or the "New Central Bank Act," Republic Act No. 8791, or the
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"General Banking Law of 2000," and other pertinent banking regulations.
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In case 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,
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general manager, or other responsible officers of the corporation or
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partnership.
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Sec. 10. Mandatory Financial Education for OFWs and their Families. - The
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Department of Finance (DOF), together with the Bangko Sentral ng Pilipinas (BSP),
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Philippine Overseas Employment Administration (POEA), and other agencies, shall
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ensure that a mandatory financial education program shall be provided to OFWs and
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their families.
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The program shall include, but not be limited to, providing information
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on financial management, budgeting, investment options, and similar topics
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which shall educate the OFWs and their families in the handling of their
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earnings and remittances.
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Sec. 11. Liability under the Revised Penal Code and Other Laws. - Prosecution
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under this Act shall be without prejudice to any liability for violation of any provision
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of the Revised Penal Code or other laws.
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Sec. 12. Implementing Agency. - The Department of Finance (DOF), in
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consultation with the BSP, POEA, Overseas Workers Welfare Administration
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(OWWA), Department of Foreign Affairs (DFA), Bankers Association of the
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Philippines (BAP), Association of Bank Remittance Officers, Inc. (ABROI), Philippine
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Association of Service Exporters, Inc. (PASEI), Philippine Association of Foreign
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Exchange Dealers, Money Changers and Remittance Agents, Inc. (PAFERAI),
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representatives from the placement or recruitment industry, non-government
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organizations advocating the rights and welfare of OFWs, and other stakeholders.


1 
shall issue the necessary rules and regulations for the effective implementation of this
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Act witliin ninety (90) days after its approval.
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Sec. 13. Repealing Clause. - All laws, decrees, executive orders, issuances, rules,
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and regulations that are inconsistent with the provisions of this Act are hereby
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repealed or amended accordingly.
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Sec. 14. Separability Clause. - If any provision of this Act is held
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unconstitutional or invalid, such holding shall not affect other provisions not affected
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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 at least two (2) newspapers of general
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circulation.
Approved,