A growing number of Ghanaian families may be unknowingly losing access to funds belonging to deceased relatives due to limited awareness about banking procedures surrounding the designation of “Next of Kin.”
Now, the Executive Director of the Institute of Liberty and Policy Innovation (ILAPI), Peter Bismack Kwofie, is spearheading a nationwide sensitization and policy advocacy initiative to address the issue.
Understanding the “Next of Kin” in Banking.
Under standard banking arrangements, a Next of Kin is a designated individual who can be contacted in the absence of a customer or in the event of the customer’s death. Often referred to as a “point of call,” the Next of Kin plays a crucial role in helping financial institutions trace families and initiate processes relating to dormant accounts.
Under Ghanaian banking practice, when a customer is unable to transact business on an account for approximately six months, banks are expected to verify the status of the account holder including contacting the designated Next of Kin to determine whether the individual is deceased or otherwise incapacitated.
However, when banks fail to notify the Next of Kin and families themselves do not follow up within one to three years such funds may eventually be classified as dormant and transferred to the Bank of Ghana for safekeeping. For many families, this process happens quietly and without their knowledge.
The Problem: Families Left in the Dark.
Mr. Kwofie explains that in numerous cases, relatives of deceased persons are unaware that their loved ones held bank accounts or insurance policies. Without proper documentation or understanding of the process, families are often left distressed, financially strained, and unsure of where to begin.
“It is not uncommon for families to discover years later that funds belonging to their deceased relatives were locked up,” Mr. Cofie noted during a stakeholder engagement session. “This initiative is about awareness, transparency, and accountability.”
The challenge is twofold:
Limited public understanding of the role and importance of the Next of Kin.
Lapses in institutional diligence, where banks may not consistently pursue required notification procedures.
Advocacy Through the Right to Information.
Between 2023 and 2024, ILAPI intensified its efforts by invoking Ghana’s Right to Information framework to formally request data from the Bank of Ghana concerning dormant and locked-up funds.
It was revealed that approximately GHS 500 million belonging to deceased persons had been locked up without their Next of Kin being aware.
Through that process, several families were able to trace and successfully recover monies that had been transferred and held at the central bank.
“This demonstrates that the system can work,” Mr. Cofie emphasized. “But it should not take extraordinary effort for citizens to access what rightfully belongs to them.”
Engagement with the Insurance Sector.
Beyond banking, ILAPI has engaged the National Insurance Commission to explore how families of deceased persons can access unclaimed insurance benefits.
Insurance policies, like bank accounts, can remain unknown to beneficiaries if there is no communication or proper documentation. The Institute’s discussions with regulators aim to establish clearer pathways for verification and claims processing.
Stakeholder Engagement and Policy Reform.
Over the past year, ILAPI has convened engagements involving commercial banks, regulators, civil society groups, and citizens. Discussions have focused on:
Strengthening compliance with regulations on contacting Next of Kin.
Simplifying procedures for accessing dormant or locked-up funds.
Enhancing public education on financial documentation and estate planning.
Encouraging banks to proactively trace families of deceased customers.
Mr. Cofie argues that financial institutions must be more diligent and proactive in fulfilling their regulatory obligations.
“Banks should not wait passively,” he said. “They have a duty to ensure that monies locked at the Bank of Ghana are returned to the rightful owners or their families.”
Petition to Parliament.
As part of its next phase of advocacy, the Institute of Liberty and Policy Innovation is preparing to present a formal petition to the Parliament of Ghana.
The petition will seek legislative and regulatory reforms aimed at:
Expediting the process for families to access dormant funds.
Making procedures less bureaucratic and less distressing.
Mandating stricter compliance by banks in reaching out to Next of Kin.
Establishing clearer public reporting on dormant and transferred funds.
A Call to Action for Citizens.
At the heart of the initiative is public education. ILAPI is urging citizens to:
Ensure Next of Kin information provided to banks is accurate and up to date.
Inform trusted family members about existing bank accounts and insurance policies.
Regularly monitor financial accounts to avoid dormancy classification.
Seek information promptly when a relative passes away.
Executive Director of the Institute of Liberty and Policy Innovation, Mr. Peter Bismark Kwofie believes that transparency, awareness, and institutional accountability can prevent unnecessary hardship for families already coping with loss.
“This is not just about money,” he said. “It is about justice, dignity, and ensuring that citizens’ rights are protected even after they are gone.”
As Institute of Liberty and Policy Innovation (ILAPI)’s campaign gains momentum, it highlights a critical but often overlooked issue in Ghana’s financial system and offers hope that reforms may soon make it easier for families to reclaim what is rightfully theirs.
Story by Freedom Etsey Lavoe/ahotoronline.com