Duterte exempts OFBank from remitting 2016 earnings to gov't

ABS-CBN News

Posted at Aug 06 2021 06:54 PM

Photo shows the exterior of the Overseas Filipino Bank (OFBank) at the Postbank Center, Liwasang Bonifacio in Manila which was inaugurated on Jan. 18, 2017. Simeon Celi Jr., Malacanang Photo/File
Photo shows the exterior of the Overseas Filipino Bank (OFBank) at the Postbank Center, Liwasang Bonifacio in Manila which was inaugurated on Jan. 18, 2017. Simeon Celi Jr., Malacanang Photo/File

MANILA — Overseas Filipino Bank (OFBank) is no longer required to remit its 2016 earnings to the national government, according to an order from President Rodrigo Duterte, which Malacañang made public on Friday. 

A law requires all government corporations to remit at lest half of the annual net earnings as cash, stock or property dividends to the national government. The President may adjust this, upon recommendation of the Finance Secretary, according to Duterte. 

“The percentage of net earnings to be declared and remitted by the OFBank to the National Government for CY [calendar year] 2016 is adjusted from fifty percent (50%) of its annual net earning to 0%,” Duterte said in Executive Order 146 signed on Thursday. 

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He said Finance Secretary Carlos Dominguez III recommended    this “in order to support the capital position of the OFBank and allow it to comply with Bangkoks Sentral ng Pilipinas regulations, s well as support the Bank’s short- and long-term plans and programs for Filipinos overseas, in the interest of national economy and general welfare.” 

The Landbank of the Philippines in July said OFBank, its all-digital unit, was serving clients from 113 countries and territories.

This means overseas Filipino workers (OFWs) in covered countries, including top destinations Saudi Arabia, United Arab Emirates (UAE), Singapore, Hong Kong, Qatar, Kuwait, Taiwan, Italy, Bahrain, and Malaysia can do their banking online, the Landbank said in a statement.

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