MANILA, Philippines – The Yuletide season is an opportune time to remember all Filipinos toiling overseas for the future of their families and their country.

Their ever-increasing remittances have been a source of resiliency for the Philippine economy.

Migrant Filipinos send more money than usual to their families during the Christmas season so their loved ones could fully enjoy their Yuletide celebration.

Just before the holidays last year, the Bangko Sentral ng Pilipinas signed an agreement with the Association of Bank Remittance Officers, Inc. (ABROI), the Bankers Association of the Philippines (BAP), the Chamber of Thrift Banks (CTB), and the Rural Bankers Association of the Philippines (RBAP) to enable their members to course the money transfers of OFWs through the BSP’s electronic and settlement system.

This system, called the Philippine Payments and Settlements System (PhilPass), provides safer means for sending remittances through theformal banking channel at lower fees.

The PhilPass is also equipped with an efficient feedback mechanism that will allow OFW remitters to trace the status of their remittances.

In yet another effort to further enhance the remittance environment for OFWs, the BSP issued a circular letter a few weeks back, urging all banks and other financial institutions to fully participate in the PhilPass Remit System.

The BSP mentioned the 12 banks that are now participating in the system: Allied Banking Corporation, Asia United Bank, Banco de Oro, Bank of the Philippine Islands, China Bank, Development Bank of the Philippines, Land Bank of the Philippines, Metrobank, Philippine National Bank, Philippine Savings Bank, Rizal Commercial Banking Corporation, and United Coconut Planters Bank.

These banks, according to the BSP circular letter, have established their connectivity with the PhilPass Remit System and have been transmitting batches of remittance transactions to the central bank’s gateway server for processing and settlement since May 4, 2010.

The BSP’s Payments and Settlements Office, headed by Director Bella Santos, explains how the PhilPass benefits migrant Filipino workers. An OFW, for example, would send money to his family in the Philippines through a foreign bank or financial institution, which is in turn a remittance partner of a Philippine bank.

However, the Philippine bank (let’s call it Bank A) is not the actual bank of the OFWs’ family. Bank A would still have to send the remittance to Bank B (the OFW beneficiary’s bank).

Under the old setup, Bank A would still have to hire the services of a courier to deliver the remittance to Bank B. This would entail more service costs: The beneficiaries then have to pay back-end processing fees of P150 to P550.

There is also the risk of couriers being robbed while on their way to the other bank, leading to more losses to the parties involved in the remittance process.

Under the PhilPass Remit System, the back-end processing fees (which Bank B charges the beneficiaries) have been standardized: From as high as P550, OFW dependents now have to pay a uniform amount of only P50.

Plus, an OFW remittance transaction settled via PhilPass will cost a remitting bank (or Bank A) only P5 (from P100).

That’s a lot of savings, as well as peace of mind , for our OFWs.

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