7 Reasons You Should Never Pawn Your Passport: Legal Consequences in the Philippines and Kuwait

Pawning a passport, commonly known as “sanla,” may seem like a quick way to get cash, but it is illegal in both the Philippines and Kuwait. Many Overseas Filipino Workers (OFWs) unknowingly put themselves at risk of legal trouble, deportation, and financial scams by using their passport as collateral.

For OFWs in urgent need of money, it might feel like the only option, especially when traditional loans are not accessible. However, handing over your passport can lead to identity theft, immigration violations, financial exploitation, and even criminal liability.

This guide will explain:
✅ The five major reasons why pawning a passport is illegal and dangerous
✅ Philippine and Kuwaiti laws that prohibit this practice
✅ Legal and safer alternatives for financial assistance

By understanding these laws and their consequences, you can protect your legal rights, stay financially secure, and avoid unnecessary risks.

1. Your Passport is Government Property—Not Yours to Pawn

One of the biggest misconceptions people have is that their passport is their personal property. In reality, a passport belongs to the issuing government, not the individual who holds it. Using it as collateral for a loan, selling it, or handing it over to a third party is an illegal act in both the Philippines and Kuwait.

📌 Philippine Law: Republic Act No. 8239 (Philippine Passport Act of 1996)

Under Section 2 of Republic Act No. 8239 (Philippine Passport Act of 1996):

“A passport remains at all times the property of the Philippine government and may only be surrendered upon lawful demand by an authorized government representative.”

This means that Filipino citizens cannot legally pawn, sell, or transfer their passport to another entity. The Department of Foreign Affairs (DFA) is the only authority that can issue or revoke passports, and any misuse can lead to penalties.

📌 Kuwait Law: Passport and Immigration Regulations

🔹 Law No. 6 of 2010 (Kuwait Private Sector Labor Law): Prohibits employers and third parties from confiscating or retaining an employee’s passport.
🔹 Kuwait Penal Code (Law No. 16 of 1960): Declares that misusing a passport is a criminal offense.
🔹 Kuwait Immigration Laws: Require expatriates to always have access to their passports. Lending or pawning a passport can lead to residency violations, fines, or deportation.

🔴 What This Means for OFWs

Many OFWs assume that handing over their passport to a lender is temporary. However, in the eyes of the law, any unauthorized possession of a passport by a third party is illegal. If caught, you could face severe consequences, including:

❌ Invalidation of your passport
❌ Loss of employment
❌ Legal action in both Kuwait and the Philippines

Pawning a passport comes with a major risk—you may never get it back. Many loan sharks and illegal lenders exploit borrowers by:

❌ Charging exorbitant interest rates
❌ Altering repayment terms at the last minute
❌ Refusing to return the passport even after full payment

🔴 Real-Life Consequences

Many OFWs have missed flights, lost job opportunities, or faced legal trouble because they could not retrieve their passports in time. Some have even been coerced into exploitative labor situations, unable to travel or seek help.

📌 Example Cases

In Kuwait, reports have surfaced of OFWs whose passports were seized by illegal lenders. Some workers ended up trapped in forced labor conditions, unable to leave abusive employers because they lacked valid identification.

In the Philippines, pawned passports have been used in criminal activities, such as illegal recruitment and human trafficking. Victims often find themselves blacklisted from traveling or facing difficulties obtaining a new passport.

🔴 What You Should Do

If your passport has been taken by an illegal lender, report the issue immediately to the Philippine Embassy in Kuwait. They can provide legal assistance and help retrieve your passport.

3. Pawning a Passport Can Lead to Identity Theft and Fraud

When your passport is in someone else’s hands, you have no control over how it is used.

🚨 Major Risks of Passport Fraud

✔️ Fake Travel Documents – Your passport could be altered and used for illegal immigration or human trafficking.
✔️ Financial Fraud – Your details could be used to open bank accounts, take out loans, or commit fraud in your name.
✔️ Criminal Activities – Your passport could be linked to fraudulent transactions or crimes, making it difficult to clear your name.

🔴 Real-World Impact

OFWs who lose control of their passport often become victims of fraud. If a stolen passport is used for illegal activities, the rightful owner could be held responsible.

📢 Key Takeaway

Never allow your passport to fall into someone else’s hands. If lost or stolen, report it to the Philippine Embassy immediately to prevent misuse.

Using a passport as collateral is not just risky—it is against the law. Both Philippine and Kuwaiti authorities strictly prohibit this practice.

🚫 Penalties in the Philippines

Under Section 20(a) of R.A. 8239, pawning a passport can lead to:

❌ Heavy fines
❌ Imprisonment
❌ Invalidation of your passport

The DFA has warned that individuals caught pawning their passports may be blacklisted from obtaining new passports in the future.

🚫 Penalties in Kuwait

If an OFW is found without a passport in Kuwait, they may face:

❌ Loss of residency permit
❌ Legal questioning by immigration authorities
❌ Deportation for violating immigration laws

Even if a lender claims to “only need the passport for security,” this is still illegal.

5. Pawning Your Passport Can Trap You in Debt

Many OFWs pawn their passports out of desperation, but this often makes their financial situation even worse.

How Loan Sharks Trap Borrowers

💰 Extremely High-Interest Rates – Your loan balance could double or triple in a short period.
💰 Unfair Repayment Terms – Lenders may demand additional payments before returning the passport.
💰 Threats and Harassment – Some lenders intimidate borrowers into silence, preventing them from seeking legal help.

6. How Illegal Lenders Exploit OFWs: Real-Life Cases and Scams

Many OFWs who pawn their passports do so because they feel they have no other choice. Unfortunately, illegal lenders, often referred to as “loan sharks,” exploit this desperation. These lenders operate in a highly predatory manner, trapping OFWs in a cycle of debt, financial abuse, and legal trouble.

📌 Common Scams Involving Pawned Passports

🔹 Bait-and-Switch Loan Agreements – Borrowers agree to a set loan amount and repayment terms, but lenders later claim the interest has increased or that additional “fees” apply. Some even double or triple the loan amount within weeks.

🔹 Holding Passports for Ransom – Some lenders refuse to return passports even after a loan is paid. They demand more money or force borrowers to sign another loan agreement, keeping them trapped.

🔹 Fake Loans and Identity Theft – In some cases, scammers use the borrowed passport to take out loans or credit in the OFW’s name, leaving them in financial and legal trouble. The borrower may not even be aware that their identity has been stolen until they attempt to travel or apply for a loan elsewhere.

7. Additional Legal Consequences: Why Authorities Take This Seriously

Governments take passport security very seriously because passports are official documents that verify identity and citizenship. Misuse of a passport—even by the owner—can be considered a serious offense.

📌 Why Do Governments Enforce These Laws Strictly?

Governments, including those of the Philippines and Kuwait, have strong laws against pawning passports for these reasons:

✔️ To Prevent Human Trafficking – Many traffickers use stolen passports to smuggle people across borders illegally. This is a major concern, especially for women and vulnerable workers.
✔️ To Combat Fraud and Crime – Lost or pawned passports can be used for financial crimes, terrorism, or identity theft.
✔️ To Ensure National Security – A government-issued document must be in the hands of the rightful owner to prevent misuse.

🔹 Kuwait’s Strict Enforcement: The Kuwaiti government actively monitors illegal lending schemes. Authorities have arrested individuals running passport-for-loan scams, and those caught lending money in exchange for passports face heavy fines and imprisonment.

🔹 Philippine DFA Warnings: The Department of Foreign Affairs (DFA) has issued multiple warnings against pawning passports. Officials emphasize that anyone caught misusing their passport may be denied future passport renewals.

🚨 What Happens if You Are Caught Without a Passport?

If an OFW loses possession of their passport and is stopped by authorities, the following consequences may occur:

❌ Fines and Legal Charges – In Kuwait, foreign workers without valid identification can be detained, fined, or deported.
❌ Loss of Employment – Employers often require workers to keep their passports secure. If an OFW cannot present their passport during a routine check, they may lose their job.
❌ Deportation – In extreme cases, foreign workers without valid residency documents are automatically deported and may be banned from returning to Kuwait or other Gulf countries.

🔴 Key Takeaway: Never put yourself at risk by giving up control of your passport. If you lose access to it, report it immediately to the Philippine Embassy or local authorities to prevent legal trouble.

Practical Financial Advice for OFWs: Safer Alternatives to Pawning a Passport

Instead of resorting to illegal lenders, OFWs should consider safer and legal financial options. Many government and non-government organizations offer financial help to Filipino workers abroad.

✅ Government Assistance for OFWs

🔹 OWWA Emergency Loans – The Overseas Workers Welfare Administration (OWWA) provides low-interest loans and emergency cash assistance for OFWs in financial distress.
🔹 SSS OFW Loan Program – The Social Security System (SSS) offers OFWs salary loans and calamity assistance to help with unexpected expenses.
🔹 DOLE-AKAP Assistance – The Department of Labor and Employment (DOLE) provides financial aid under the DOLE-AKAP program, especially for displaced OFWs.

✅ Alternative Borrowing Options

💡 Licensed Money Lenders in Kuwait – If a loan is necessary, borrow from government-accredited lenders that offer fair repayment terms and legal contracts.
💡 Remittance and Credit Services – Many financial institutions provide small emergency loans based on remittance history, allowing OFWs to access cash without surrendering documents.
💡 Employer Salary Advance – Some employers in Kuwait offer salary advances for employees in urgent financial need. This can be a safer option than turning to illegal lenders.

🚨 What to Do if Your Passport is Already Pawned?

If you have already pawned your passport, take the following steps immediately:

1️⃣ Report the Incident to the Philippine Embassy – Seek assistance in retrieving your passport legally.
2️⃣ Refuse Further Payments if the Lender is Violating the Agreement – If a lender is demanding additional fees, report them to Kuwaiti authorities for illegal activity.
3️⃣ Seek Legal Advice from POLO-Kuwait – The Philippine Overseas Labor Office (POLO) can provide legal guidance on how to recover your passport and handle the situation safely.

Final Thoughts: Never Pawn Your Passport—It’s Not Worth the Risk

Pawning your passport might seem like a quick fix, but the consequences are severe. You risk:

🚨 Losing your passport permanently
🚨 Becoming a victim of financial fraud or identity theft
🚨 Facing legal consequences, including deportation
🚨 Getting trapped in exploitative labor conditions

If you are facing financial difficulties, always seek legal and safe alternatives such as OWWA assistance, licensed financial institutions, and employer salary advances.

💡 Your passport is more than just an ID—it’s your key to freedom and security. Never pawn it!

🚨 If someone is illegally holding your passport, report it immediately to the Philippine Embassy in Kuwait.

A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books.  Read more: About DiaryNiGracia