Mar seeks probe into banks’ fees on OFW remittances

Sen. Manuel Roxas II is seeking a Senate investigation on fees imposed by some banks on remittances of Filipino overseas workers that he described as "excessive."

Roxas is considering passing legislation to protect Filipino migrant workers from "possible abuses."

"The bulk of remittances is meant for low-income families, since two-thirds of our overseas Filipino workers come from the provinces. We must ensure that our OFWs and their families are getting the full value of their money," he said in a statement.

One local bank, which he did not identify, charges $6 for every remittance coursed through a subsidiary in the United States.

"Assuming the OFW concerned sends money home at least once a month, at $6 for each transfer, over 12 months, he or she would have spent a total of $72 (or P4,000), which is equivalent to 16 days’ minimum wage here," Roxas said.

"Considering advances in technology, surely there is room for reduction in fees without eroding the profitability of those engaged in the remittance trade. In fact, remittances can now be facilitated simply via intercontinental mobile telephone text messaging."

The Senate should "inquire into possible interventions that would improve the efficiency of remittances to the country, foster competition and drive down the cost (of remittances)." That should also provide Filipino families more income and give the Philippines’ struggling economy an added boost, Roxas added.

Around eight million Filipinos work in dozens of countries and aboard most ships across the globe because of lack of jobs back home. They send up to $8 billion in remittances to families back home.

About 2,000 Filipinos leave for jobs abroad every month and the welfare of Filipino migrant workers is a sensitive political issue for the government.

President Arroyo risked anger from the United States and other Western allies in July last year when she pulled out the country’s small troop contingent in Iraq after militants threatened to execute truck driver Angelo de la Cruz, who was held captive.

The government is currently trying to secure the release of Roberto Tarongoy, who has been held captive in Iraq since November.

Next to merchandise exports, OFW remittances are the country’s second biggest source of foreign exchange.

Annual OFW remittances have grown from only $103 million in 1975 to $8.5 billion last year, making the Philippines the third largest recipient of migrant remittances, next to India and Mexico, according to the Bangko Sentral ng Pilipinas.

Roxas pointed out that leaders from North and South America pledged in summit last year in Mexico to bring down the cost of remittances to half by 2008.

Roxas also said the finance and central bank chiefs of the Group of Seven — the US, the United Kingdom, Canada, France, Germany, Italy and Japan — declared in April 2004 that, "on remittances, we will continue to work on our initiatives to reduce barriers that raise the cost of sending them and to integrate remittance services in the formal financial sector." — Christina Mendez