MANILA – The House of Representatives on Tuesday approved on the third and final reading two bills seeking to provide free financial education for the overseas Filipino workers (OFWs) and hefty discounts on their remittance fees.
With 174 votes, the House passed House Bill (HB) 10959, or the Overseas Filipino Workers Remittance Protection Act, which entitles OFWs to a 50 percent discount on fees or charges imposed on remittances, either by banks or non-bank institutions, to their families in the Philippines.
Romualdez noted that OFW remittances to the Philippines averaged more than USD30 billion yearly – the fourth largest in the world after India, Mexico, and China – keeping the local economy afloat for several decades now.
“This is one way of showing our unsung heroes, our more than 10 million OFWs across the globe, that we really care for them, and we have the compassion to help them lighten their burden for all their sacrifices, being the breadwinners of their families,” Romualdez said in a statement.
The measure, authored mainly by Senior Deputy Speaker Aurelio “Dong” Gonzales Jr. (Pampanga third district), was sponsored in the plenary by House Assistant Majority Leader Jude Acidre (Tingog party-list), Chairman of the House Committee on Overseas Workers Affairs.
“This provides incentives to encourage remittance centers to grant the discount. The centers may claim the discounts granted as tax deductions based on the cost of services rendered to OFWs to be treated as ordinary and necessary expense deductible from their gross income,” Acidre said.
Under HB 10959, all banks and non-bank financial intermediaries are prohibited from raising their current remittance fees without prior consultation with the Departments of Finance (DOF), of Migrant Workers (DMW) and the Bangko Sentral ng Pilipinas (BSP).
The provisions of the Act shall be applicable to all OFW remittances, whether voluntary or mandated by law, orders, issuances or rules and regulations.
The measure also listed several prohibited acts, violation of any of which shall be subject to a penalty of imprisonment of a minimum of six months to a maximum of six years, and a fine of PHP50,000, but not exceeding PHP750,000.
The bill prohibits the following:
–Misappropriation or conversion, to the prejudice of the OFW or beneficiary, of foreign exchange remittances received in trust, or on commission, or for administration, or under any other obligation involving the duty to make delivery of, or to return the same, or by denying having received such foreign exchange remittance;
–Taking of foreign exchange remittances without the consent of the OFW or beneficiary;
–Imposition of remittances fees in excess of those prescribed in this Act;
–Failure to post in a conspicuous place of the establishment the Philippine Peso rate of the foreign currency being transacted; and,
–Failure to conduct consultation with DOF, BSP and DMW before raising remittance fees.
Free financial literacy training
The House of Representatives also approved on the third and final reading HB No. 10914, or the “Free OFW Financial Education Act”.
The proposed bill requires OFWs to undergo continuously updated financial education or literacy training seminars as part of their Pre-Departure Orientation Seminars (PDOS) and Post-Arrival Training Seminars (PATS).
It also provides overseas Filipino seafarers with the option to attend these seminars at their respective points-of-hire or within a reasonable time after their return to the country.
Families of OFWs will also be equipped with financial education through online seminars and other feasible means.
“This landmark legislation ensures that our overseas Filipino workers and their families will receive free comprehensive financial education, equipping them with the knowledge and tools they need to secure their financial future,” Romualdez said.
“Through mandatory financial literacy training integrated into pre-departure and post-arrival seminars, along with online resources for OFW families, we are creating a support system that will help OFWs maximize their hard-earned income and protect them from financial scams and pitfalls,” he added.
Under HB 10914, the Department of Migrant Workers and other government agencies will be tasked to educate OFWs and their families on the topics of 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.
The program will also orient them about obligations and contracts, credit transactions, interests, pledges, mortgages, guarantees, and knowledge of financial products like stocks, bonds, insurance, and mutual funds. (PNA)
