5272.1 Pilur of tin z Philo TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 25 AUG -4 P5:11 First Regular Session SENATE RECEIVED BY S. No. Introduced by Senator Jinggoy Ejercito Estrada AN ACT ENHANCING THE FINANCIAL LITERACY OF OVERSEAS FILIPINO WORKERS (OFWS), AND FOR OTHER PURPOSES EXPLANATORY NOTE The Overseas Filipino Workers (OFWs), with their relatively higher earnings, regular remittances to their families, and constant use of digital platforms, are becoming chief targets of online scams. Nefarious elements take advantage of such attributes to trick and lure hapless OFWs into fraudulent activities and illegitimate investment opportunities. It is truly heartbreaking to hear stories of OFWs losing their hard-earned money and lifetime savings in an instant due to financial mismanagement or falling prey to con artists. We thus welcome government initiatives aimed at assisting OFWs and their families in building their bright future through financial literacy trainings. • The Bangko Sentral ng Pilipinas (BSP), together with the Overseas Workers Welfare Administration (OWWA) and BDO Foundation, launched PiTaKa or "Pinansyal na Talino at Kaalaman" which aims to equip OFWS
with the ability to better manage their remittances, get out of debt, set aside savings or make prudent investments. 1 • In 2023, the Overseas Filipino Bank (a digital bank of Landbank), in cooperation with the Department of Migrant Workers (DMW) and OWWA conducted 1,230 financial education sessions for departing OFWs, reaching 60,283 attendees. It also collaborated with Public Employment Service Offices in key localities to conduct financial literacy sessions for the families of OFWs.? • DMW partnered with the Philippine Stock Exchange and the Securities and Exchange Commission to provide financial literacy lessons and investment seminars to ensure that OFWs can invest their money in legitimate and profitable undertakings. The seminars also equip OFWs on how to avoid debt traps and credit card by mail schemes, which are common issues among Filipinos abroad. 3 This measure, reported out by the Senate Committee on Migrant Workers during the 19th Congress, seeks to institutionalize into law and streamline ongoing efforts promoting financial literacy of our OFWs. This bill proposes all OFWs to undergo mandatory financial literacy orientation seminars which shall be an integral part of the Pre-Departure Orientation Seminar (PDOS). Financial literacy programs shall be free of charge and shall include discussion on topics such as financial planning, saving and budgeting, debt management, financial products like stocks, bonds, and insurance, among others. Cash remittances of our OFWs hit a record-high of US$34.49 billion in 20244 and continue to be a major driving force of the national economy contributing around 10% of our gross domestic product (GDP). In view of their valuable economic 1 "BSP, OWWA and BDO Foundation Launch PiTaKa: A Financial Literacy Program for OFWs." February 18, 2019. https://www.bsp.gov.ph/SitePages/MediaAndResearch/MediaDisp.aspx?ltemld=4844 2 Overseas Filipino Bank 2023 Annual Report. Accessed through https://indd.adobe.com/view/65000f7f-8ca3- 48cd-b8a2-d845454a1bcf 3 "DMW partners with PSE, SEC in providing financial literacy seminars for OFWs." March 2, 2024. https://www.abs-cbn.com/news/2024/3/2/dmw-partners-with-pse-sec-in-providing-financial-literacy- seminars-for-ofws-1216 * https://www.bsp.gov.ph/Statistics/External/ofw2.aspx
contribution, the need to empower OFWs toward financial freedom, and ensuring that their hard work will redound to the upliftment of their families, the passage of this legislation is earnestly sought. JINGGOY EJERCITO ESTRADA
209.10 Pite of tir Erretup TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 AUG -4 P5:11 SENATE RECEIVED BI: S. No. . Introduced by Senator Jinggoy Ejercito Estrada AN ACT ENHANCING THE FINANCIAL LITERACY OF OVERSEAS FILIPINO WORKERS (OFWS), AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. - This Act shall be known as the "OFWs Financial Literacy
2 Enhancement Act".
Sec. 2. Declaration of Policy. - The State recognizes the valuable contributions
4 of Overseas Filipino Workers (OFWs), to the national economy through their foreign 5 exchange remittances. As such, the State shall take appropriate measures to protect 6 and ensure OFWs' financial and economic well-being by promoting and providing mandatory financial literacy programs that will educate, train and provide them with 8 necessary knowledge and skills to protect their earnings, resources, investments, 9 remittances, and to manage their debts, credits, and other financial transactions.
Sec. 3. Mandatory Financial Literacy Training Seminar. - All OFWs shall undergo
11 mandatory financial literacy orientation seminars which shall be an integral part of the Pre-Departure Orientation Seminar (PDOS). An OFW 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 training may also be incorporated into Pre-Migration Orientation Seminars (PMOS), OFW family and children's circles learning session and
1 other training programs under the Department of Migrant Workers (DMW) and other 2 relevant agencies mandated to protect the welfare of OFWs.
Sec. 4. Participating Agencies. - The PDOS and PATS shall be primarily
4 conducted by the DMW, as the lead agency, in coordination with the Department of Finance (DOF), the Overseas Workers Welfare Administration (OWWA), and 6 accredited PDOS providers across the country, including the embassies or consulates in the country of destination. As lead agency, the DMW, in coordination with the DOF, Bangko Sentral ng Pilipinas (BSP), OWWA, Department of Information and Communications Technology 10 (DICT), and Securities and Exchange Commission (SEC), is tasked to: a) Formulate training modules on financial literacy; b) Initiate and conduct training programs on financial management and responsibility; c) Apprise OFWs on, among others, the advantages and benefits of financial opportunities; d) Ensure the accessibility of qualified online financial and economic advisors and/or counselors; and e) 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 discussion 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 which may be deemed relevant by the concerned government agencies.
Sec. 6. Penalties and Administrative Liabilities. - Any unjustifiable refusal by a
2 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 4 (P50,000.00) to One hundred thousand pesos (P100,000.00), without prejudice to possible administrative sanctions which may be imposed under existing laws, ranging 6 from reprimand, suspension from office or dismissal from service, depending on the 7 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 10 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 for any reason, any provision of this Act is
declared unconstitutional or invalid, such parts not affected thereby shall remain in full force and effect.
Sec. 9. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations and other issuances or parts thereof which are contrary to or inconsistent with this Act are hereby repealed, amended or modified accordingly.
Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its
20 publication in the Officia/ Gazette or in any two (2) newspapers of general circulation. Approved,