Free OFW Financial Education Act

TWENTIETH CONGRESS OF THE 25 JUL -3 P4:31 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE S. No. 90 Introduced by Senator Raffy T. Tulfo AN ACT PROVIDING FOR A FREE FINANCIAL EDUCATION TO OVERSEAS FILIPINO WORKERS AND THEIR FAMILIES EXPLANATORY NOTE Financial literacy is defined as the ability to effectively apply financial skills for budgeting, investing, and overall management of personal finances. According to the Banko Sentral ng Pilipinas (BSP), the average Filipino remains to have low levels of financial literacy which make them have a difficult time making important decisions regarding savings, investments, loans, and many more. The onslaught of the COVID- 19 pandemic showed all Filipinos the importance of financial safety and stability in times of economic depression. In relation to this, numerous Overseas Filipino Workers (OFWs) are victimized by various investment and online scams. Due to a lack of financial knowledge, a great number of OFWs are exploited and swindled off their hard-earned money and return home to their families empty-handed. As such, financial education remains the key component to equip Filipinos, most importantly OFWs, with the skills and knowledge to make sound financial choices. The proposed measure aims to provide financial literacy training programs for OFWs, that is free-of-charge, as a pre-departure and post-arrival seminar in order to promote and develop financial responsibility. Upon doing this, the State shall aid in the

.. : development of OFWs' financial Independence by providing them with the tools to better manage their finances. In view of the foregoing, the passage of this bill is earnestly sought RAFFY T. TUITO M

- : JUL -3 P4:31 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session RICAN 03 SENATE S. No. 90 Introduced by Senator Raffy T. Tulfo AN ACT PROVIDING FOR A FREE FINANCIAL EDUCATION TO OVERSEAS FILIPINO WORKERS AND THEIR FAMILIES 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 "Free OFW Financial

Education Act."

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to afford

full protection to labor - local and overseas - and promote full employment and equality of employment opportunities for all. The State shall have the continuous duty to acknowledge the valuable contribution of Overseas Filipino Workers (OFWs) to our economy through their remittances. In doing so, the State shall adopt measures that will take care of the welfare and benefits of OFWs and their families like the provision for a free financial education or literacy training to equip them with enough knowledge for a proper and wise use of their hard-earned money.

Sec. 3. Coverage.- This Act shall cover all OFWs, either land-based or sea-based,

documented or otherwise, and their families.

Sec. 4. Mandatory Financial Education Seminar.- All OFWs shall undergo

mandatory and continuously updated financial education or literacy training seminars which shall become an integral part of the Pre-Departure Orientation Seminars (PDOS)

1 of departing OFWs. Moreover, Post-Arrival Training Seminars (PATS) on financial 2 education or literacy shall likewise be required of OFWs within a reasonable time upon arrival in their respective countries of destination on their fist employment contract, or 4 those who transfer from one place of work to another without stopping by the Philippines. 5 Overseas Filipino Seafarers shall have the option of attending these continuously updated financial education or literacy training seminars at their respective points-of-hire, or within 7 a reasonable time, after their return to the Philippines. Families of OFWs throughout the Philippines shall likewise be equipped with 9 financial education and knowledge through on- line seminars and other feasible and 10 effective means.

Sec. 5. Participating Agencies. - The PDOS and PATS shall be primarily conducted

12 by the Department of Migrant Workers (DMW), as the lead agency, in coordination with 13 the Overseas Workers Welfare Administration (OWWA), the Department of Finance (DOF), the Bangko Sentral ng Pilipinas (BSP), the Department of the Interior and Local 15 Government (DILG) and all the barangays under it, and the accredited PDOS providers across the country, including the embassies or consulates, whichever may be available, 17 in the countries of destination. As the lead agency, the DMW is tasked to formulate training modules on financial 19 education or literacy, initiate and conduct training programs on financial management and responsibility; apprise OFWs on financial opportunities and pitfalls, among others; ensure the accessibility of qualified online financial and economic advisors and/or 22 counselors; and disseminate knowledge-expanding activities that promote financial 23 education or literacy among OFWs and their dependents.

Sec. 6. Free Financial Education Programs. - Financial education or literacy training

programs undertaken under this Act shall be free-of-charge. The DMW shall, in coordination with the OWWA, the DOF, and the BSP, educate the OFWs and their families on the following financial subjects, issues or programs: Consumer Protection, Protection on Mortgaged or Collateralized Properties. Avoidance of Exorbitant Interests on Loans or Debts, and Credit information on Micro- and Small-Scale Enterprises to prospective lenders.

Financial education shall also include information on Obligations and Contracts, Credit Transactions, Interests, Pledges, Mortgages, Guarantees, and Knowledge on Financial Products such as stocks, bonds, insurance, and mutual funds, which are available in the market. The DMW shall regularly coordinate with the Department of Information and Communications Technology and social media companies to disallow posts and messages that are meant to confuse, mislead, victimize, defraud or entice OFWs and their families to engage in gambling and other similar activities, including on-line scams, pyramiding 9 schemes, and the like.

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

approval of this Act, the Secretary of the DMW shall, in consultation with the Administrator of the OWWA, the Secretary of the DOF, the Governor of the BSP, and the Secretary of 13 the DILG, promulgate the necessary rules and regulations for the effective implementation of this Act.

Sec. 8. Repealing Clause. - All laws, decrees, executive orders, issuances, rules

and regulations which may be inconsistent with any of the provisions of this Act are 17 hereby deemed repealed, amended or modified accordingly.

Sec. 9. Separability Clause. If any provision of this Act is held unconstitutional or

invalid, such holding shall not affect other provisions not affected thereby.

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,