OFW Financial Literacy Enhancement Act

Schate TWENTIETH CONGRESS OF THE lice of the a carp REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG 27 P1:27 SENATE RECEIVED BY S. No. 1270 Introduced by Senator MARK A. VILLAR AN ACT ENHANCING THE FINANCIAL LITERACY OF OVERSEAS FILIPINO WORKERS (OFWs) EXPLANATORY NOTE Financial literacy is defined as the ability to effectively manage, budget, and plan the use of financial resources. However, reports indicate that average Filipinos lack basic financial literacy and struggle in managing and saving their earnings, which leads to vulnerability to financial exploitation. Overseas Filipino Workers (OFWs), often referred to as our modern-day heroes who play a crucial role in sustaining the national economy, are unfortunately susceptible to the consequences of financial illiteracy. They often fall victim to fraudulent investment schemes and online scams due to insufficient knowledge of financial planning and investment principles. To help our bayanis, this bill mandates the implementation of free and accessible financial literacy programs for OFWs. Seminars and training sessions shall be provided prior to deployment and upon return to the Philippines. The curriculum will focus on personal budgeting, responsible investing, fraud awareness, and long- term financial planning. Ultimately, this will equip OFWs with financial knowledge and practical skills necessary to reduce their vulnerability to online scams, promote financial independence, and empower them to make sustainable financial choices for their well- being and that of their families. In view of the foregoing, the passage of this bill is sought. MARK A. VILLAR

Bffice of the Samarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG 27 P1:27 SENATE RECEIVED BY: S. No. 1270 Introduced by Senator MARK A. VILLAR AN ACT ENHANCING THE FINANCIAL LITERACY OF OVERSEAS FILIPINO WORKERS (OFWs) 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 "OWs Financial Literacy

Enhancement Act"

Sec. 2. Declaration of Policy. - The State recognizes the valuable contributions

of Overseas Filipino Workers (OFWs) to the national economy through their foreign exchange remittances. As such, the State shall take appropriate measures to protect and ensure OFWs' financial and economic well-being by promoting and providing mandatory financial literacy programs that will educate, train and provide them with necessary knowledge and skills to protect their earnings, resources, investments, remittances and to manage their debts, credits and other financial transactions.

Sec. 3. Mandatory Financial Literacy Training Seminar. - All OFWs shall undergo

mandatory financial literacy orientation seminars, which shall be an integral part of the Pre-Departure Orientation Seminar (PDOS). An OF who enters a new contract shall likewise be required to undergo Post-Arrival Training Seminars (PATS) on financial literacy within a reasonable time from their arrival in the country of destination.

Financial literacy trainings may also be incorporated into Pre-Migration 2 Orientation Seminars (PMOS), OFW family and children's circles learning sessions, and 3 other training programs under the Department of Migrant Workers (DMW) and other relevant agencies mandated to protect the welfare of OFWs.

Sec. 4. Participating Agencies. - The PDOS and PATS shall be primarily

conducted by the DMW, as the lead agency, in coordination with the Department of Finance (DOF), the Overseas Workers Welfare Administration (OWWA), and accredited PDOS providers across the country, including the embassies or consulates, 9 in the country of destination. As lead agency, the DMW, in coordination with DOF, Bangko Sentra/ Ng Pilipinas 11 (BSP), OWWA, Department of Information and Communications Technology (DICT) and Securities and Exchange Commission (SEC), is tasked to formulate training modules on financial literacy; initiate and conduct training programs on financial management and responsibility; apprise OFWs on, among others, the advantages and benefits of financial opportunities; ensure the accessibility of qualified online financial and economic advisors and/or counselors; and disseminate knowledge-expanding activities that promote financial literacy among OFWs and their dependents.

Sec. 5. Free Financial Literacy Training Programs. - Training programs

undertaken under this Act shall be free of charge. The DMW, in coordination with the relevant participating agencies, shall educate OFWs on how to protect their earnings, savings, and investments, with emphasis on how to prioritize savings, manage their income and debts, and use their remittances for productive and sustainable purposes to futureproof their hard-earned money. Financial literacy programs shall include lectures and discussions on topics such as financial planning, saving and budgeting, debt management, financial products, such as stocks, bonds, insurance, mutual funds, digital financial literacy, cyber- hygiene, data integrity, fraud and scam prevention, financial consumer protection, financial patterns, practices and culture of the country of destination, and other topics 30 which may be deemed relevant by the concerned government agencies.

Sec. 6. Penalties and Administrative Liabilities. - Any unjustifiable refusal by a

government official or personnel tasked under this Act to provide financial literacy training or seminar shall be punished with a fine of at least Fifty thousand pesos (Php50,000.00) to One hundred thousand pesos (Php100,000.00), without prejudice 5 to possible administrative sanctions which may be imposed under existing laws, ranging from reprimand, suspension from office or dismissal from service, depending 7 on the severity and frequency of such inaction or violation.

Sec. 7. Implementing Rules and Regulations. - Within ninety (90) days from

9 the approval of this Act, the Secretary of the DMW, in consultation with the Secretary of the DOF, the Governor of the BSP, the Administrator of OWWA, together with the heads of other relevant government agencies, shall promulgate the necessary rules and regulations for the effective implementation of this Act.

Sec. 8. Separability Clause. - If any provision of this Act is held invalid or

unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

Sec. 9. Repealing Clause. - All laws, decrees, executive orders, proclamations,

rules, and regulations, or parts thereof inconsistent with this Act, are hereby repealed or modified accordingly.

Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,