Over $14.6 Million in Dormant Accounts Held by Ghana’s Central Bank: ILAPI Calls for Policy Action
The Institute for Liberty and Policy Innovation (ILAPI) recently revealed that the Bank of Ghana (BoG) holds substantial funds in dormant accounts across various currencies. According to ILAPI, over GH₵167.8 million, $14.6 million, and £2.4 million are currently held by the BoG. These funds, accumulated from inactive accounts across financial institutions in Ghana from 2016 to 2023, are believed to belong primarily to deceased individuals whose families may be unaware of their existence.
In a statement on November 5, 2024, ILAPI’s Executive Director, Peter Bismark Kwofie, highlighted that many of these accounts may belong to people who died in accidents, floods, or other unfortunate incidents. “We believe that some of these funds could belong to individuals who passed away, leaving their families unaware of their bank balances,” Kwofie said. This lack of access to funds has left many surviving family members, who depended on these resources, struggling financially.
Kwofie explained that funds from dormant accounts are transferred to the BoG after five years of inactivity, as specified by Ghana’s Banks and Specialist Deposit-Taking Institutions Act, 2016 (Act 930). According to Section 143 of the Act, an account is deemed dormant if there has been no activity by the account holder or a third party on their behalf for two consecutive years. Dormant account funds are subsequently added to the Dormant Account Register managed by the BoG.
ILAPI criticized the administrative challenges in claiming dormant funds, noting that the current process is complex and deters many from seeking access. In a recent study commissioned by ILAPI, over 95% of respondents reported difficulties in retrieving funds from dormant accounts, with 70% ultimately abandoning the effort. These challenges, ILAPI argues, exacerbate poverty as families lose access to resources that could have supported education and basic needs.
In response, ILAPI issued several recommendations to the BoG to make these funds more accessible to beneficiaries. The organization urged the BoG to implement a policy requiring banks to record the Ghana Card information of account holders’ next of kin during account setup, ensuring easier identification of beneficiaries if the account holder passes away. ILAPI also called for an annual report detailing dormant accounts held by the BoG, which would provide transparency and accountability.
To streamline the process further, ILAPI recommended that the BoG partner with local government bodies and leverage the national identification system to trace beneficiaries of dormant account holders. Additionally, ILAPI proposed establishing a timeline for the BoG to retain unclaimed funds, after which efforts should be made to locate and assist the rightful heirs.
ILAPI’s recommendations aim to ensure that funds in dormant accounts reach their intended beneficiaries, thereby alleviating poverty and addressing social challenges. The organization’s push for policy reform could support thousands of Ghanaian families affected by the loss of primary earners.
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