A Senate measure targeting predatory practices in the overseas remittance industry cleared its second reading Tuesday, moving the Philippines closer to imposing binding limits on the fees charged to migrant workers sending money home.
Senate Bill No. 1917, the proposed OFW Remittance Protection Act, would give the Bangko Sentral ng Pilipinas joint authority with the departments of Finance and Migrant Workers to set allowable fee ranges for banks and other BSP-supervised entities handling OFW transfers.
Among its stricter transparency requirements, the bill would compel all remittance centers to display current peso conversion rates in a visible location. It also guarantees that whatever peso equivalent is quoted at the time of transfer is exactly what beneficiaries receive — no deductions after the fact.
“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.
Violators — including those caught imposing undisclosed charges, abruptly altering rates, engaging in fraudulent conduct, or failing to meet reporting obligations — face imprisonment of six months to six years, fines ranging from P50,000 to P750,000, or both.
Beyond fee regulation, the bill takes aim at financial vulnerability within OFW households. A mandatory financial literacy program would be embedded across the existing orientation seminar cycle — covering pre-employment, pre-departure, and post-arrival stages. The curriculum would address financial management, scam awareness, consumer rights, property protection for those with mortgaged assets, and credit access for micro- and small-scale enterprises.
The bill’s financial education provisions reflect a broader recognition that remittance exploitation does not end at the transfer counter — it extends into how funds are managed, and how families are targeted once the money arrives.
