Bank of Ghana Holding Close to Half a Billion Cedis in Dormant Accounts – ILAPI Says

Bank of Ghana Holding Close to Half a Billion Cedis in Dormant Accounts – ILAPI Says

The Institute for Liberty and Policy Innovation (ILAPI) has revealed that the Bank of Ghana (BoG) currently holds close to half a billion Ghana cedis in dormant accounts accumulated between 2016 and 2023.

These accounts, managed by various financial institutions, include funds in Ghanaian cedis, U.S. dollars, euros, and British pounds, with over GH₵167.8 million, $14.6 million, €2.3 million, and £2.4 million in holdings – cumulatively that amounts to GHS 496.6 million.

According to ILAPI’s Executive Director, Peter Bismark Kwofie, much of the unclaimed wealth in these dormant accounts may belong to deceased individuals, including victims of floods, accidents, and other disasters, leaving surviving family members unaware of the funds.

In a statement issued on November 5, 2024, Mr Kwofie stressed the impact of these dormant funds on vulnerable families struggling with poverty, as unclaimed funds “could have taken children, spouses, and families out of poverty,” were it not for access restrictions and bureaucratic challenges.

Under Ghana’s Banks and Specialist Deposit-Taking Institutions Act, 2016 (Act 930), accounts with no customer-initiated activity for two years are classified as dormant and transferred to the BoG after five years of inactivity.

Mr Kwofie pointed out that, from 2021 to mid-2024, a total of 1,448,660 accounts were transferred under these regulations, adding that BoG policies prohibit tracing the families of deceased account holders.

ILAPI has therefore outlined a series of recommendations to the BoG, advocating for reforms to facilitate access to dormant accounts by a next of kin.

Among the proposed measures are:

1. National ID Integration: The BoG should mandate that banks request the Ghana Card for next of kin during account opening, streamlining identity verification and improving accessibility for relatives.
2. Public Transparency: The BoG should issue clearly defined policies regarding dormant account management to foster public trust and awareness.
3. Annual Reporting: Dormant account data, including funds received, should be published in the BoG’s annual reports, providing greater transparency.
4. Collaborative Identification Efforts: The BoG should leverage Ghana’s national ID system and work with local government entities to locate beneficiaries, expediting the process of family notification.
5. Set Retention Periods for Dormant Funds: The BoG should adopt policies to limit the retention period of dormant funds, ensuring families can access these resources through recognized legal processes.

In a recent study commissioned by ILAPI, over 95% of respondents noted significant bureaucratic obstacles in attempting to reclaim funds from dormant accounts, with 70% eventually abandoning the process entirely, forcing some families into hardship.

According to Mr Kwofie, “It is essential for the BoG to implement straightforward, legal measures so that vulnerable families can recover these funds rather than face poverty and economic exclusion.”