The Institute for Liberty and Policy Innovation (ILAPI) has revealed that significant sums of money—GH¢167.8 million and US$14.6 million – remain dormant in accounts held by the Bank of Ghana (BoG).
According to ILAPI Executive Director, Peter Bismark Kwofie, these funds, which include additional sums of GBP2.4 million and EUR 2.3 million, have accumulated in inactive accounts between 2016 and 2023.
The institute highlighted that over 1.4 million accounts were transferred to BoG as dormant between 2021 and July 2024.
This data, provided by the Bank of Ghana, in response to ILAPI’s petition, underscores a widespread issue: substantial funds are locked in financial institutions, effectively out of reach for families who may need them, particularly in cases where the account holders have passed away.
As part of ILAPI’s Next of Kin (NOK) project, launched in 2023, Kwofie emphasized the importance of simplifying access for beneficiaries to claim funds of deceased family members.
The project seeks to address the complications that arise when legal processes, such as obtaining Letters of Administration or Navigating Probate, become barriers for families left behind.
A 2023 ILAPI report reveals that over 95% of respondents found these processes burdensome, with 70% abandoning efforts to claim funds, often pushing families into poverty.
Under Section 92 of the Banks and Specialised Deposit-taking Institutions Act, 2016 (Act 930), dormant accounts are transferred to the BoG after five years of inactivity.
Despite public education efforts by the BoG in appointing a next of kin, ILAPI argues that further proactive measures are needed to protect families from poverty.
Key Recommendations
ILAPI has put forward several recommendations to the Bank of Ghana and the government:
- Enhanced Beneficiary Outreach: The BoG should go beyond public awareness campaigns, amending its policies to actively trace and engage next of kin and beneficiaries.
- Ghana Card Use for NOK Identification: During account opening, financial institutions should record Ghana Card details for designated next of kin to streamline identification.
- Improved Transparency and Annual Reporting: The BoG should issue annual reports on dormant accounts, making dormant funds management practices public.
- Revised Dormant Account Policies: The BoG should collaborate with local authorities and national ID systems to identify beneficiaries more effectively.
- A Time Limit on Unclaimed Funds: ILAPI proposes a fixed period for BoG to hold dormant funds before mandatory outreach to locate family members.
The ILAPI further stressed that these funds could play a crucial role in alleviating economic hardships for families, particularly those who depended on the deceased for financial support.
Mr. Kwofie called on the Central Bank to demonstrate leadership by ensuring ethical stewardship of these funds, emphasizing that unclaimed funds can be a critical resource for families if managed transparently and responsibly.
