Bill protecting OFW

remittance passed
By Hananeel Bordoy

The IIouse of Representatives has approved Ilouse

Bill 9032 or the Overseas Filipino l{orkers (0FW)
Rernittance Protection Act on second reading.
In deference to the country's modern heroes, the
bill intends to protect the money earned by migrant
workers by offering discounts on thdir remittances
t0 their families in the Philippines.
The bill provides effective mechanisms to protect
Ot the rights and interests of the overseas rqorkers who
N contribute significantly to the national economy
thr0ugh foreign exchange remittances.
lv
f'
E This will also provide tax incentives for the
!o
lrl esta.blishments providing for dlscourtts.

'These OFW remittances are transferred from

e
o the OFW to intermediaries, such as financial and
z non-bank financial institutions, before they reach
o
their beneficiaries. In the course of the fund
= transfer, the amounts remitted are subject to several
z fees and high remittance charges which result in
c4 the depletion of the amount to be remitted and
:EI
received,' Pampanga Rep. Aurelio Gonzales Jr.,
4 principal autho| of the bill, said.
5 HB 9032 provides mandatory 10-60 percent discount
z depending 0n the amo\rnt of remittances from banks
and non-bank finanpial intermediarles.
= This will also provide tax incentives for the
establishments providing for discounts.
They can claim these discounts as tax deduction
based on the cost of services rendered for the 0Flrys
but the tax deduction will be mandatory and shall
grant incentives for remittance establishments as
they provide the discounts.
Ilowever, the bill will not allow the imposition of
remittance fees that exceeds the prescribed charge
provided in the bill.
Financial intermediaries offering
remittance serYices to OFW are
" pvgn -'s" prohibited from increasing their
current fe€s without consultation
with the Department of Finance
(DoF), Bangko Sentral ng Pilipinas
(BSP) and the Philippine Overseas
Employment Administration (P0EA).
Any person who will violate
the prohibitions of this bill wiu
be penalized accordingly while
institutions governed by BSP will
be charged with fines and sanction
provided under the New Central Bank
'
Act, General Banking Law of2000 and
pertinent banking rules.
The bill also mandates Doq BSP
and P0EA to provide financial
education programs for the families
of the overseas workers.
Financial education sho u ld
include managemeni, budgeting, and
investment options to ensure proper
handling of eamings and remittances.