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BSP firms up plan to address threat posed by informal remittance channels
FINANCIAL EXCLUSION BURDENS OFWs
OVERSEAS Filipino workers (OFWs) gather at the HSBC Building in the central business district of Hong Kong in this August 13, 2006, file photo. The volume of cash sent home by OFWs is significantly larger than what the Bangko Sentral ng Pilipinas has on record, as some OFWs choose to course their remittances through informal channels, or those unregulated and unmonitored by the Central Bank. Paul Hilton/Bloomberg News
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By Bianca Cuaresma
ash remittances to the country sent by Filipino migrants back home have long been a source of the economy’s strength, with billions of dollars being pushed into the country’s cash stream annually as fresh fuel.
In 2016 cash remittances coursed through banks alone hit $26.9 billion for the year, growing by 5 percent from the previous year’s total. Latest data from the Central Bank also showed cash sent by Filipino migrant workers beat the seasonal slack in January to grow faster than the expansion in the holiday season. In particular, cash remittances coursed through banks in January this year grew 8.6 percent from the same month in 2016 to hit $2.17 billion. This is also an acceleration from the 3.6 percent seen last December, where remittances are supposed to be the highest, as overseas
Filipino workers (OFWs) finance holiday expenditures of their families in the Philippines.
‘Financial exclusion’
In reality, however, the volume of cash sent home by Filipino workers is significantly larger than what the Bangko Sentral ng Pilipinas (BSP) has on record, as some OFWs choose to course their remittances through informal channels, or those unregulated and unmonitored by the Central Bank. Central Bank Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said remittances coursed through informal channels range from 4 Continued on A2
BOC raids on Mighty Corp. warehouses yield ₧4-B ‘fake’ tax stamps, cigarettes By Marna Dagumboydel Rosario Philippines News Agency
Joserpizarro | Dreamstime.com
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PESO exchange rates n US 50.3390
AN ILDEFONSO, Bulacan— Officials of the Bureau of Customs (BOC) on Friday seized some P4 billion worth of allegedly counterfeit Bureau of Internal Revenue (BIR) tax stamps and cigarettes carrying the “Mighty” and “Marvel” brands in two warehouses inside the Nazarene Trading Co. at Kilometer 64, Barangay Matimbubong here. The allegedly fake BIR tax stamps, along with the cigarettes, were seized in two warehouses
owned by the controversial tobacco firm Mighty. Corp., manufacturer of Mighty and Marvel cigarette brands, whose owner and top executives on Wednesday were charged by the BIR in a P9.564billion tax-evasion case before the Department of Justice for allegedly using fake tax stamps on their products to evade the payment of excise tax to the government. In an interview with Customs Commissioner Nicanor E. Faeldon, the forfeited cigarettes, totaling 160,000 master cases and 80 million cigarette packs, seized by the raiding team have an estimated P4 See “Mighty,” A2
n japan 0.4538 n UK 63.0395 n HK 6.4813 n CHINA 7.3103 n singapore 35.9795 n australia 38.3885 n EU 54.2956 n SAUDI arabia 13.4245
Source: BSP (24 March 2017 )