The Institute for Liberty and Policy Innovation (ILAPI), a Free Enterprise Policy Think Tank, has commended the Bank of Ghana for providing clarity and educating the Ghanaian public on the issue of Next of Kin but raised some concerns over the matter.
ILAPI opined that the action by the bank was a positive one and will bring some level of awareness and education to the Ghanaian public.
But pointed out that the bank has ignored debate on the dormant account of the deceased person, where the BoG keeps the funds forever.
The central bank has provided clarity that it is not automatic for Next of Kin to inherit the accounts of deceased relatives.
In a statement, the BoG explained that such assertions are “pervasive misconceptions that the person nominated as Next-of-Kin by the account holder automatically inherits the funds in the account when the account holder passes on.”.
“To inherit or have access to the account of a deceased customer, one will have to be named in the deceased customer’s will as a beneficiary of the account, and a court of competent jurisdiction will have to grant Letters of Probate to empower the person who has been named in the will as a beneficiary to obtain access to the deceased customer’s account.
“Administrators of the estate of a person who dies intestate can be appointed through Letters of Administration (L.A.) issued by a court of competent jurisdiction, which grant access to a deceased customer’s account.
“Based on this understanding, it is important to choose a Next of Kin who is capable of providing relevant information about you when the need arises. As much as possible, we encourage the choice of next-of-kin to be of legal age,” part of the statement explained.
Reacting to this, ILAPI’s Executive Director Peter Bismark Kwofie pointed out that this was an opportune time for the BoG to ensure that locked-up funds of deceased persons are transferred to their families or relatives.
‘’ It is an opportune time to review the dormant account policy of the Bank of Ghana to allow locked-up funds of deceased individuals to be transferred to families to prevent family poverty.
We have sent an RTI request to BoG on a dormant account with certain demands. We are waiting on the feedback from the BoG. ’’
Institute for Liberty and Policy Innovation (ILAPI)
Re: *Next of Kin does not automatically Inherit Bank Account*
We appreciate the ongoing education on the misconceptions around the Next of kin on financial account opening forms by the Bank of Ghana (BoG). This is crucial to guide citizens and customers of regulated financial institutions to ensure the right and legally abled persons as named as the Next of Kin.
However, at *ILAPI* we think the Bank of Ghana is ignoring the debate on the dormant account of the deceased person where the BoG keep the funds from forever.
It is an opportune time to review the dormant account policy of the Bank of Ghana to allow locked up funds of deceased individuals to be transferred to families to prevent family poverty.
We have sent RTI request to BoG on dormant account with certain demands. We are waiting on the feedback from the BoG.
ILAPI
Tema
Background
In 2023, ILAPI produced a study report titled “Ending Family Poverty: Unlocking the Funds of a Deceased Relative by Beneficiaries and Next of Kin.”
The report highlighted the various administrative barriers and red tape that have bedevilled the efforts of Next of Kin (NoK) and beneficiaries to access funds of their deceased relatives from the banks, insurance, and the Social Security and National Insurance Trust (SSNIT).
The report disclosed that in the past 10 years in Ghana, 72 persons out of every 100,000 population have suffered bodied injuries and 8 out of the same population died through road traffic accidents, and hospitals such as 37 Military and the police had to conduct mass burial, according to records.
These individuals, the report noted, might have bank accounts and insurance policies that their next of kin might never know about. When this happens, their money with the banks is transferred to be kept forever by the Bank of Ghana if no family member goes to claim the money after 5 years. In the case of SSNIT and insurance, they keep the unclaimed money to themselves forever.
Mr. Kwofie, at the launch of the report in November 2023, posited that “In the financial sector, it is incumbent on the banks, insurance companies, and SSNIT to find out whether their account holders, clients, or customers are deceased or missing in the case that the account becomes dormant. This is why all insurance policyholders, bank account holders, and pension schemes have their Next of Kin, serving as the point of contact.”
“The Bank of Ghana’s policy, through the Banks and Specialised Deposit-Taking Institution Act 930 (2016), demands that banks must contact the next of kin of the account holder to find out the whereabouts of the account holder when the account is dormant for 3 years,” he added.
By: Rainbowradioonline..com/Ghana
