The Bank of Ghana (BoG) holds significant sums in dormant accounts across financial institutions, according to findings by the Institute for Liberty and Policy Innovation (ILAPI). The funds—over $14.6 million, £2.4 million, and GH₵167.8 million—accumulated between 2016 and 2023, were found in dormant accounts in various banks and financial institutions, ILAPI revealed in a press release on Tuesday, November 5.
Peter Bismark Kwofie, Executive Director of ILAPI, stated that these dormant accounts contain funds believed to belong largely to deceased individuals, some of whom lost their lives in tragic events like road accidents and natural disasters. “We believe some of these funds could belong to individuals who passed away in incidents such as floods or accidents, with their families remaining unaware,” Mr. Kwofie explained.
Dormant accounts are defined by Ghana’s Banks and Specialist Deposit-taking Institutions Act, 2016 (Act 930), as accounts that show no customer-initiated activity for two years. Under this Act, accounts inactive for five years are transferred to BoG’s Dormant Account Register (DAR). Between 2021 and July 2024 alone, 1,448,660 dormant accounts were handed over to the BoG.
Mr. Kwofie voiced concern that many families, often dependent on the financial support of deceased relatives, suffer without access to these funds. “Funds that could support families struggling with education or basic survival are held by financial institutions and the BoG,” he said. ILAPI emphasized the pressing need for reform, advocating for policies to ease access to these funds and mitigate poverty among affected families.
A recent ILAPI-commissioned survey on this issue revealed that over 95% of respondents found the process to access such funds complex, leading 70% of applicants to abandon their claims, thus exacerbating poverty and, in some cases, social issues.
ILAPI has called for specific actions from BoG to address these challenges:
- Simplifying Access for Next of Kin: ILAPI recommended BoG mandate banks to collect Ghana Card details of next of kin during account opening to reduce identification hurdles.
- Enhancing Transparency: The BoG should publicly clarify dormant account management policies to build trust.
- Improving Accessibility and Identification: Revising current laws to allow BoG to trace and notify beneficiaries of dormant accounts was also suggested, alongside collaboration with national identification systems to locate next of kin.
- Annual Reporting: ILAPI urged BoG to include details on dormant accounts in its annual reports.
- Establishing Retention Policies: Setting a defined retention period before BoG can reallocate dormant funds, with ongoing efforts to trace family members and ease legal access to the funds, was proposed.
ILAPI’s call for action comes at a time when many vulnerable Ghanaians face economic hardships. As Mr. Kwofie noted, providing these families access to dormant account funds could greatly improve their financial well-being and prevent poverty from claiming more lives.
