Philippines Senate Approves OFW Remittance Protection Act on Second Reading

The Philippine Senate has approved the proposed OFWs Remittance Protection Act, officially known as Senate Bill No. 1917, on its second reading, Business World reported.

The legislation aims to shield overseas Filipino workers from exorbitant money transfer fees whilst improving overall transparency in cross-border financial transactions.

Under this measure, the Bangko Sentral ng Pilipinas, alongside the Department of Finance and the Department of Migrant Workers, will be responsible for establishing an acceptable range for remittance fees and related charges.

This will apply to all banks and entities servicing overseas remittances under central bank supervision.

Furthermore, the proposed law requires every remittance centre to clearly display the Philippine peso equivalent of the foreign currencies being exchanged.

Under this measure, beneficiaries must receive the precise peso equivalent of the remitted funds.

Officials also incorporated a free, mandatory financial literacy and protection programme into the bill to safeguard overseas workers and their dependents.

Facilitators will embed these training sessions within existing pre-employment, pre-departure, and post-arrival orientation seminars.

Attendees will learn about essential subjects like financial management, consumer protection, scam prevention, and mortgage property guidance.

To enforce these new standards, the bill outlines strict penalties.

Financial entities found guilty of imposing hidden or excessive fees, abruptly altering exchange rates, failing to disclose charges, or engaging in fraudulent practices could face imprisonment ranging from six months to six years.

Additionally, violators may face fines between PHP 50,000 and PHP 750,000, or a combination of both penalties.

Featured image: Edited by Fintech News Philippines based on an image by syda_productions via Freepik.

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