Overseas Filipino Workers (OFWS) Remittance Protection Act

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session SENATE S. No. 1917 PREPARED AND SUBMITTED BY THE COMMITTEES ON BANKS, FINANCIAL INSTITUTIONS AND CURRENCIES; MIGRANT WORKERS; AND WAYS AND MEANS WITH SENATORS VILLAR (C.), ESTRADA, TULFO (R.), VILLANUEVA, EJERCITO, VILLAR (M.), AND PANGILINAN AS AUTHORS THEREOF 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

2 the "Overseas Filipino Workers' (OFWs) Remittance Protection Act".

SEC. 2. Declaration of Policy. - The State shall protect

the rights of workers and promote their welfare. Accordingly, the State shall regulate the fees charged 7 by banks, digital or app-based or e-money transfer

services, and bank or non-bank intermediaries, on foreign remittances of Filipino migrant workers, whether land or sea-based. The State shall also provide financial protection and literacy education on financial planning and savings management to help OFWs and their families achieve 6 better living standards and a sustainable livelihood after overseas employment.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Bangko Sentral ng Pilipinas (BSP)- Supervised Financial Institutions (BSFIs) refer to financial institutions supervised by the BSP which are authorized to engage in money service business activities. These include: (1) Electronic money issuers; (2) Virtual currency exchanges; (3) Remittance and transfer companies or remittance service providers; (4) Remittance sub-agents; and (5) Money changers or foreign exchange dealers;

0 x (b) Overseas Filipino Worker (OFW) or "Migrant Worker" refers to a person who is engaged, to be engaged, or has been engaged in a remunerated activity in a State of which the person is not a 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 in the high seas; (c) Remittance refers to the foreign exchange earnings sent home by OFWs or their employers or agents through BSFIs and other entities offering remittance services; and (d) Remittance fee refers to the fee or charge imposed by BSFIs for processing or sending the remittance of OFWs from the country of origin to the country of destination and/or the charge for receiving the remittance at the country of destination. This also includes other currency conversion charges and other related charges associated with remittance services.

SEC. 4. Applicability of this Act. - This Act shall apply

to all BSFIs and their accredited agents and sub-agents offering foreign remittance services to OFWs, regardless of whether the remittances are voluntary or mandated by law, orders, issuances, rules and regulations, or the employment contract. This Act shall also apply to 7 unlicensed BSFIs and other unregulated entities offering 8 remittance services, and to OFWs and their families making use of the above services.

SEC. 5. Remittance Fees and Other Charges. - The

11 Department of Finance (DOF), the BSP, and the 12 Department of Migrant Workers (DMW), after periodic consultations with relevant stakeholders, shall set the range of remittance fees and other related charges imposed by BSFIs and other entities offering foreign remittance services for OFWs.

SEC. 6. Posting of the Foreign Exchange Rates and

Charges. - In addition to existing BSP regulations on disclosure requirements of BSFIs, all BSFIs and other

entities offering remittance services to OFWs shall 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 shall be the same amount that the beneficiary of the remittance shall receive.

SEC. 7. Prohibited Acts. - The following are prohibited

acts: (a) Misappropriation or conversion, to the prejudice of the OFW or the remittance beneficiary, of foreign exchange remittances received in trust, on commission, for administration, or under any other obligation involving the duty to deliver or return the same, or by denying having received such foreign exchange remittance; (b) Taking, mulcting, or skimming off foreign exchange remittances, without the written consent of the OFW, or releasing to the allottee or beneficiary a lower Philippine peso equivalent of the foreign currency transacted compared to the rate at the time of remittance;

(c) Failure to post in a conspicuous place within the 2 establishment's premises, the Philippine peso equivalent rate of the foreign currency being transacted; and (d) Failure to comply with the standard rates or matrix of rates set by the DOF, BSP, and the DMW pursuant to Section 5 of this Act.

SEC. 8. Free Mandatory Financial Protection and

Literacy Education for OFWs and their Families. - All 9 OFWs and their families shall undergo a mandatory continuing financial protection and literacy education, free- of-charge. The training shall be an integral part of the Pre- Employment Orientation Seminar for prospective OFWs and their families. It shall also be part of the Pre- Departure Orientation Seminar for departing OFWs and the Post-Arrival Orientation Seminar on-site. In addition, or consulates all Migrant Workers Offices, embassies, shall regularly conduct a continuing financial literacy program for OFWs on-site.

a

SEC. 9. Implementing Agencies. - The DMW and the

2 Overseas Workers Welfare Administration (OWWA), as the 3 lead agencies, shall implement the mandatory continuing 4 financial protection and literacy education, either separately or in collaboration with all or some of the responsible agencies, in coordination with the Technical 7 Skills and Development Authority, Department of the 8 Interior and Local Government (DILG) for local 9 government units of OFW communities or localities, the DOF, the BSP, and partner BSFIs. Under the program, OFWs and their families shall be 12 educated on the following and other critical topics: financial financial management and responsibility, opportunities and pitfalls, disinformation and financial scams, consumer protection, protection on mortgaged or collateralized properties, and credit information on micro- and small-scale enterprises. It shall also include information on obligations and contracts, credit transactions, interests, pledges, mortgages, guarantees,

and investing in financial products, such as stocks, bonds, insurance, and mutual funds.

SEC. 10. Penalties. - Any person who is found guilty of

4 any of the acts described in Section 7 hereof shall be punished with imprisonment of not less than six (6) months and one (1) day but not more than six (6) years, or a fine of Fifty thousand pesos (P50,000) but not exceeding Seven hundred fifty thousand pesos (P750,000), or both, at the discretion of the court. Aside from the liability provided in the preceding paragraph, any person found to have violated the provisions of this Act shall be subjected to fines, penalties, 13 and sanctions under Republic Act No. 7653 or "The New Central Bank Act", as amended, Republic Act No. 8791 or "The General Banking Law of 2000" ", and other pertinent banking regulations. In case the violation is committed by a juridical person, the liability shall be imposed on the president, managing director or partner, general manager, or other

responsible directors, officers, or employees of the juridical person.

SEC. 11. Liability under the Revised Penal Code and

4 Other Laws. - Prosecution under this Act shall be without 5 prejudice to any liability for violation of any provision of the Revised Penal Code or other special laws.

SEC. 12. Implementing Rules and Regulations. - The

8 rules and regulations necessary for the effective and 9 efficient enforcement of the provisions of this Act shall be formulated by the DMW and the OWWA, in consultation with the BSP, DOF, DILG, Department of Foreign Affairs, 12 Bankers Association of the Philippines, Chamber of Thrift 13 Banks, Rural Bankers Association of the Philippines, 14 Cooperative Banks Federation of the Philippines, Association of Bank Remittance Officers, Inc., Philippine Association of Foreign Exchange Dealers, Money Changers and Remittance Agents, Inc., Association of Remittance Company Compliance Officers. organizations of licensed recruitment or manning agencies, non-government

organizations advocating the rights and welfare of OFWs, and other stakeholders, and shall be implemented within ninety (90) days from the effectivity of this Act. Unjustified or willful failure or refusal of the concerned government agencies to promulgate the implementing rules and regulations (IRR) within the of these specified period shall subject the heads government agencies to administrative penalties under applicable civil service laws. Should the IRR contain provisions that are contrary to this Act, the heads of the government agencies responsible for such provision, when done in bad faith or with gross negligence, shall be held administratively liable.

SEC. 13. Repealing Clause. - All laws, presidential

15 decrees, executive orders, letters of instruction, proclamations, administrative orders, issuances, rules, and 17 regulations that are inconsistent with the provisions of this 18 Act are hereby repealed, amended, or modified accordingly.

•

SEC. 14. Separability Clause. - If any provision of this

2 Act is declared unconstitutional, the remainder hereof not 3 otherwise affected shall remain in full force and effect.

SEC. 15. Effectivity. - This Act shall take effect after

fifteen (15) days following its publication in the Official 6 Gazette or in a newspaper of general circulation. Approved,