Philippines Moves to Lower Remittance Costs for Overseas Workers

The Philippine government is actively pursuing measures to reduce remittance costs for Overseas Filipino Workers (OFWs), a demographic crucial to the nation's economy. Finance Secretary Frederick Go recently engaged in discussions with representatives from Swift and Revolut during the 2026 International Monetary Fund-World Bank Annual Meetings in Bangkok, Thailand. The objective of these discussions was to explore avenues for faster and more affordable cross-border payments, according to a post from the Department of Finance (DOF).

Go emphasized the need for lower transfer fees and transparent exchange rates, stating that he wants to help OFWs by lowering transfer fees and ensuring fair, transparent exchange rates, so more of their earnings reach their families. This initiative arises from ongoing concerns regarding the high costs associated with remittances, which are vital for many families in the Philippines who depend on these funds for daily expenses.

In tandem with Go's efforts, the Philippine Senate has approved the OFWs Remittance Protection Act, officially known as Senate Bill No. 1917, on its second reading. This legislation aims to shield OFWs from exorbitant money transfer fees and enhance transparency in financial transactions. As reported by Business World, the bill mandates the Bangko Sentral ng Pilipinas (BSP), alongside the DOF and the Department of Migrant Workers, to establish acceptable ranges for remittance fees applicable to all banks and entities involved in overseas remittances.

“Go said he wants to help OFWs by lowering transfer fees and ensuring fair, transparent exchange rates, so more of their earnings reach their families.”Frederick Go, Finance Secretary

Furthermore, the proposed law requires remittance centers to display the Philippine peso equivalents of foreign currencies exchanged, ensuring beneficiaries receive the correct amount. It also includes a mandatory financial literacy program designed to educate overseas workers and their families about financial management, consumer protection, and scam prevention. This initiative reflects a broader commitment to safeguarding the financial interests of migrant workers.

To enforce compliance with these new regulations, the bill stipulates strict penalties for financial entities that impose hidden fees or engage in fraudulent practices. Violators could face imprisonment ranging from six months to six years, alongside hefty fines ranging from PHP 50,000 to PHP 750,000 (approximately USD 900 to USD 13,500).

As the government continues to explore solutions to make remittance processes more affordable and transparent, the collaboration with fintech companies like Swift and Revolut may pave the way for innovative approaches to enhance the financial ecosystem for OFWs.