OFW remittance bill advances
THE Philippine Senate on Tuesday approved on second reading a bill that aims to protect overseas Filipino workers (OFWs) from excessive remittance fees and strengthen transparency in cash transfers.
Senators approved Senate Bill No. 1917 or the proposed OFWs Remittance Protection Act, which seeks to regulate remittance fees, disclose foreign exchange rates, impose stronger protections, and facilitate financial literacy programs for OFWs.
Under the proposed measure, the departments of Finance and Migrant Workers, and the Bangko Sentral ng Pilipinas (BSP) will be tasked to impose the range of remittance fees and other related charges for BSP-supervised banks or other entities servicing OFW remittances.
It also mandates all remittance centers to post in a conspicuous place 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,” the bill stated.
The measure also seeks to create a free mandatory financial protection and literacy program for OFWs and their families.
The training program will be integral to the OFWs Pre-Employment Orientation Seminar, their Pre-Departure Orientation Seminar, and Post-Arrival Orientation Seminar.
Topics will include financial management and responsibility, financial opportunities and pitfalls, disinformation and financial scams, consumer protection, protection on mortgaged or collateralized properties, and credit information on micro- and small-scale enterprises.
Those imposing excessive or hidden remittance fees, found suddenly changing rates, not disclosing charges, conducting fraudulent practices, and failing to comply with reporting requirements may imprisoned between six months to six years or a fine between P50,000 to P750,000, or both. — Adrian H. Halili
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