The Bank of Ghana (BoG) holds substantial funds from dormant accounts across various financial institutions, according to a recent report by the Institute for Liberty and Policy Innovation (ILAPI). Amounts totalling over $14.6 million, £2.4 million, and GH₵167.8 million have accumulated between 2016 and 2023, alongside €2.3 million. These dormant accounts reportedly belong largely to deceased individuals whose families are unaware of the funds.
Peter Bismark Kwofie, ILAPI’s Executive Director, highlighted the situation in a press statement on Tuesday, urging action to connect these funds with their rightful beneficiaries. “Many of these funds belong to people who passed away unexpectedly, often in disasters such as road accidents and floods,” said Mr. Kwofie, adding that families struggling for survival are left without access to money that could alleviate poverty and support education.
Under the Banks and Specialist Deposit-taking Institutions Act of 2016 (Act 930), dormant accounts—accounts that have seen no customer-initiated activity for two years—are moved to the Dormant Account Register. If inactive for five years, funds are transferred to the BoG. Between 2021 and July 2024, nearly 1.5 million dormant accounts were transferred.
The ILAPI report emphasises that these funds could benefit the families of deceased account holders, many of whom are in dire need. ILAPI’s research from 2023 revealed that over 95% of respondents found the process to access dormant funds overly complex, with 70% abandoning it entirely. This, they argue, leaves families facing financial hardship and even social instability.
ILAPI is calling for immediate measures, including:
- Requiring next-of-kin identification during account opening to simplify future access.
- Establishing public policies on dormant account management for transparency.
- Allowing BoG to trace next-of-kin for dormant accounts.
- An annual report on dormant funds by the BoG.
- Collaborating with local governments to identify beneficiaries through national ID systems.
The organisation further suggested a policy allowing families a set timeframe to claim funds before unclaimed balances are redirected, potentially helping thousands who might otherwise go unsupported.
Source:TheDotNews