A large sum of money has been reported by the Institute for Liberty and Policy Innovation (ILAPI) to be sitting in dormant accounts at the Bank of Ghana (BoG) for the past 8years.
The report indicates that the Bank of Ghana (BoG) holds over GH₵167.8 million in local currency and more than US$14.6 million in dormant accounts.
Additionally, there are over £2.4 million and €2.3 million accumulated between 2016 and 2023. Furthermore, between 2021 and July 2024, the number of dormant accounts transferred to BoG has reached 1,448,660.
This information was revealed in a document provided to the Institute for Liberty and Policy Innovation (ILAPI) by the BoG, following a petition requesting a detailed report on the sums collected from inactive accounts over the last eight years (2016–2024). ILAPI’s Next of Kin (NOK) project has been ongoing since 2023.
The NOK initiative aims to establish a point of contact for beneficiaries to access funds left by deceased individuals at financial institutions, going beyond the legal framework.
According to ILAPI’s report, they suspect that some of these funds could belong to individuals who died in road accidents, floods, or other incidents, with many families unaware of their existence.
These funds, which could have helped children, spouses, and families escape poverty, remain with the regulated financial institutions and the BoG, due to the accounts being classified as dormant.
The report also pointed out that the law does not allow BoG to trace family members to help them access the funds of the deceased.
It’s crucial to note that some of these beneficiaries relied on their deceased relatives for education and financial support. The inability to access these funds forces them to drop out of school and struggle to survive, potentially pushing them into poverty and social issues.
“It is also evidence that the Bank of Ghana has made strides in educating the public on the importance of appointing a next of kin and the relevance of next of kin on financial documents, which is commendable. Nevertheless, more proactive measures are needed to understand that countless families face financial constraints, and the failure to claim the funds of the dead only exacerbates the poverty levels among families in Ghana,” it said.
The report further urged the central to go beyond its ongoing literacy campaigns and actively engage in identifying and contacting the beneficiaries and Next of Kin by amending its laws and policies.
“BoG to issue directives to all banks that the Ghana Card of the Next of kin during account opening should be requested to eschew identity crises and reduce the long timelines during the investigations on the dead. Clearly defined policies on the management of dormant accounts and transparency on how these funds are managed should be made available to the public to enhance confidence and trust. A review of the law to allow BoG trace families, next of kin of dormant account.”
“An annual report on dormant accounts and funds received could be released or be a part of the BoG’s annual reports. BoG should also use the national identification systems, and collaborate with local government bodies to identify beneficiaries or the next-of-kin of dormant accountholders. Unclaimed funds of dormant accounts should have a specific number of years the BoG could keep. A policy should be considered to trace families to access funds through recognized administrative and legal processes with a harmonized system.”