House inquiry on OFW remittance fees increase sought

MANILA, Philippines - The House of Representatives Committee on Banks and Financial Intermediaries has been urged to invite the representatives of the Bangko Sentral ng Pilipinas (BSP), the Department of Finance and other concerned agencies to conduct an inquiry on the effect of increasing remittance fees to overseas Filipino workers (OFWs).

 

Cagayan De Oro City Rep. Rufus Rodriguez noted in House Resolution 1594 that the alleged connivance of banks in money laundering resulted in the closure of remittance businesses in the United States (US) and increase of remittance fees.

 

The said connivance in money laundering involves drug lords and terrorist groups, according to Rodriguez.

 

"The US government decided to crackdown on money laundering activities involving suspected drug lords and terrorist groups," Rodriguez said.

 

Rodriguez mentioned the case of HSBC which was found guilty of allowing drug lords and terrorist groups to launder millions of dollars and was eventually fined $1.9 billion by the court for failing to implement the anti-money laundering law.

 

The lawmaker said that the current situation will make it harder for OFWs to send money to their relatives in the Philippines.

 

OFWs cash remittances composed eight percent of the the country's gross domestic product last year, 43 percent of which came from the US. The current remittances amount to 5.7 percent or $9.3 billion.

 

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