The Institute for Liberty and Policy Innovation (ILAPI) has disclosed that the Bank of Ghana (BoG) holds significant funds in dormant accounts totaling over GH₵167.8 million, $14.6 million, £2.4 million, and €2.3 million. These funds, accrued between 2016 and 2023, span multiple currencies—Ghanaian cedis, US dollars, British pounds, and euros—and are linked to inactive accounts at various financial institutions.
These accounts, many of which are believed to belong to deceased individuals, remain untouched, with the majority linked to victims of road accidents, floods, and other incidents. ILAPI’s Executive Director, Peter Bismark Kwofie, emphasized the potential hardship for families who may be unaware of their deceased relatives’ funds held by BoG. “These funds could greatly support families of the deceased who depended on them for education and basic needs,” he stated in a press release dated November 5, 2024.
Dormant Accounts and Inactivity Periods
Under Section 92 of the Banks and Specialist Deposit-taking Institutions Act, 2016 (Act 930), inactive accounts at regulated financial institutions are transferred to BoG after five years of inactivity. Section 143 of the Act defines a dormant account as one without any customer-initiated activity for two years, after which these funds are recorded in the Dormant Account Register (DAR).
ILAPI’s Call for Policy Action
ILAPI highlighted the struggle faced by vulnerable Ghanaians, urging BoG to take concrete steps to identify and disburse dormant account funds to the rightful next of kin. “Families are plunged into poverty, while these funds remain idle,” Mr. Kwofie added, stressing the need for accessible administrative processes for beneficiaries. According to ILAPI’s 2023 research report, over 95% of respondents cited the process as cumbersome, with 70% ultimately abandoning their claims.
ILAPI’s Recommendations to the Bank of Ghana
To address these issues, ILAPI has put forth several key recommendations for BoG:
- Introduce Ghana Card Verification – Request the Ghana Card of next of kin during account openings to simplify future verification.
- Increase Transparency in Dormant Account Management – Make policies on dormant account handling accessible to the public.
- Law Revisions for Next of Kin Tracing – Review legislation to permit BoG to trace beneficiaries of dormant accounts.
- Annual Report on Dormant Accounts – Include a detailed report on dormant accounts and their funds as part of BoG’s yearly disclosures.
- Collaborate with National Identification System – Work with local authorities to use the national ID system for identifying beneficiaries.
- Policy on Unclaimed Funds Retention Period – Implement a specific retention period for unclaimed funds, allowing families to claim funds through recognized legal processes.
ILAPI urges the Bank of Ghana to leverage these recommendations to prevent funds from remaining unclaimed and help provide relief to families of deceased account holders across the country.
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