BoG’s directive on unclaimed and dormant accounts is a step in the right direction – Financial expert

Following the directive issued by the Bank of Ghana (BoG) concerning unclaimed Balances & Dormant Accounts, Financial experts have commended the BoG for the steps it has taken so far.

The directive is pursuant to Section 92 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).

According to the Bank of Ghana, the objectives of these directives are to establish processes and procedures for reclaim of funds by dormant account holders or their legal representatives, among others.

The directive shall however not be applicable to accounts that are subjects of litigation, fraud, investigations by a regulatory authority or law enforcement agencies, and others.

Financial expert and the Executive Director at the Financial Literacy Foundation, Dr Richmond Frimpong has commended the move by the Central Bank, explaining that it is in line with the laws of the Bank and Specialised Deposit-Taking Institutions Act.

“This is just what we call the Section 92 of the Banks and Specialized Deposit-Taking Institutions, so the BoG is just moving a step proactively to ensure that the institutions comply with the laws and ultimately it is to protect depositors. If you look at the category of institution that this cover it is almost all the way from Micro Finance institutions up-down to the high stream balances and usually the challenge of unclaimed balances and the dormant account has been huge and it sits somewhere quiet because of a number of reasons, so it not even just for dormant accounts but unclaimed balances quite substantial and it covers current accounts, savings accounts, credit cards and even time deposit and I think it’s a good initiative and it is a good move,” he said.

He further stated, “we can say that the Banks will not be too excited about it but as long as it gets to the BoG and there is oversight over those funds then its good.”

Reacting to some possible factors that could cause a bank not to comply with the directive, he said he does not think any bank will do that but if they should then it means they are disrespecting the regulatory body.