The Institute for Liberty and Policy Innovation (ILAPI) has revealed that the Bank of Ghana (BoG) currently holds substantial sums in dormant accounts, which have been inactive for several years across financial institutions in Ghana. The total amounts in these accounts, spanning from 2016 to 2023, include more than GH₵167.8 million, $14.6 million, €2.3 million, and £2.4 million.
ILAPI suggests that many of these funds may belong to deceased individuals, primarily those who died in road accidents, floods, or other disasters, with their families unaware of the dormant accounts. According to ILAPI’s Executive Director, Peter Bismark Kwofie, “We believe some of these funds could belong to individuals who died in accidents or disasters, and in most cases, their families are unaware of their existence.”
In a statement issued on November 5, 2024, Mr. Kwofie disclosed that over 1.4 million dormant accounts have been transferred to BoG between 2021 and July 2024. Under Ghana’s Banks and Specialised Deposit-taking Institutions Act (2016, Act 930), funds from accounts that have been inactive for five years are transferred to BoG. Section 143 of the Act defines a dormant account as one with no customer-initiated activity for at least two years. These funds are then recorded in the Dormant Account Register (DAR) at the Bank of Ghana.
ILAPI has expressed concern about the potential impact of these unclaimed funds, especially for vulnerable families who are struggling financially. The organization argues that these funds could significantly help those in need, particularly children and families who depend on deceased relatives for economic survival. “Funds that could have taken children, spouses, and families out of poverty are being kept by regulated financial institutions and the Bank of Ghana, in the name of dormancy,” said the statement.
Mr. Kwofie also pointed out that the current process for accessing funds from deceased account holders is overly complicated, with many family members abandoning the process due to its cumbersome nature. ILAPI’s 2023 research found that over 95% of respondents found the process challenging, and 70% had given up entirely. As a result, families are left impoverished and unable to access funds that could support their livelihoods.
In light of these findings, ILAPI is calling for several key actions to improve the management of dormant accounts and ensure that funds are accessible to the rightful heirs. These measures include:
- Requesting Ghana Card IDs for Next of Kin: BoG should require banks to ask for the Ghana Card of the next of kin during account opening to simplify the identification process when claims are made.
- Clear Public Policies on Dormant Accounts: BoG should provide clear and accessible policies regarding the management of dormant accounts to increase transparency and build public trust.
- Law Review for Tracing Families: ILAPI urges a review of the law to enable BoG to trace the families of dormant account holders more effectively.
- Annual Reports on Dormant Accounts: ILAPI requests that BoG release annual reports detailing dormant accounts and the funds they hold, as part of their official report to ensure transparency.
- Collaboration with Local Authorities: BoG should collaborate with the national identification system and local government bodies to identify and reach out to the next of kin of dormant account holders.
- Defined Timeframes for Fund Retention: ILAPI advocates for a policy that sets a clear timeframe for retaining unclaimed funds from dormant accounts, with a system in place to trace and distribute the funds through recognized legal and administrative channels.
Through these reforms, ILAPI hopes to ensure that the funds in dormant accounts can be properly accessed by the families of deceased account holders, helping to alleviate financial hardship for many vulnerable Ghanaians.
