BY KWEKU BOLTON
The Institute for Liberty and Policy Innovation (ILAPI), in its mission to reduce inheritance poverty and improve human dignity, has uncovered significant sums of money in dormant accounts with the Bank of Ghana (BoG). According to ILAPI’s findings, these accounts hold over GH₵167.8 million, $14.6 million, GBP 2.4 million, and EUR 2.3 million, accumulated between 2016 and 2023. Additionally, between 2021 and July 2024, 1,448,660 dormant accounts were transferred to the BoG.
The revelation was made following a petition by ILAPI for a comprehensive report on funds collected from inactive accounts over the past eight years. ILAPI’s Next of Kin (NOK) project, launched in 2023, aims to address inheritance challenges and ensure beneficiaries can access funds left by deceased individuals at financial institutions.
Legal Challenges in Accessing Unclaimed Funds
Accessing these unclaimed funds often involves navigating complex legal procedures, especially when there is no will or clear documentation of the deceased’s assets. The probate process can be time-consuming and cumbersome, involving court proceedings and administrative tasks. According to a 2023 ILAPI research report, 95% of respondents found the process burdensome, with 70% abandoning it, thereby plunging families into poverty.
Dormant accounts and their funds at regulated financial institutions are transferred to the BoG when inactive for five years, per Section 92 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). The BoG’s Unclaimed Balances and Dormant Accounts Directives, issued in February 2021, classify a dormant account as one with no customer-initiated activity for two years. Such funds are then transferred to the Dormant Account Register (DAR) of the banks.
ILAPI believes some of these funds may belong to deceased individuals whose families are unaware of the accounts. These unclaimed funds could alleviate poverty and support the education and economic survival of beneficiaries.
ILAPI’s Demands from BoG and Government
To address these issues, ILAPI calls on the BoG and the government to:
• Go beyond literacy campaigns and actively engage in identifying and contacting beneficiaries and next of kin by amending laws and policies.
• Issue directives to banks to request the Ghana Card of the next of kin during account opening to reduce identity crises and investigation timelines.
• Clearly define policies on managing dormant accounts and ensure transparency in how these funds are managed to enhance public confidence.
• Review the law to allow BoG to trace families and next of kin of dormant account holders.
• Include an annual report on dormant accounts and funds received in BoG’s annual reports.
• Use national identification systems and collaborate with local government bodies to identify beneficiaries or next of kin.
• Implement a policy specifying the duration BoG can hold unclaimed funds from dormant accounts and establish procedures to trace families through recognized administrative and legal processes.
While acknowledging the BoG’s efforts in educating the public on appointing a next of kin, ILAPI emphasizes the need for more proactive measures to alleviate economic challenges faced by families unknowingly eligible for these funds. The BoG must demonstrate leadership and ethical stewardship to ensure economic prosperity and human dignity.
Below is a Press statement signed by Peter Bismark Kwofie, Executive Director, Institute for Liberty and Policy Innovation (ILAPI).
