Next of Kin can’t Automatically Inherit Bank Account – BoG

Mr. Augustine Donkor, the Head of the Conduct Supervision Unit of the Bank of Ghana (BoG), has dispelled the fallacy that the assets or funds in the bank account of a deceased individual are automatically inherited by the next of kin.

Mr. Donkor, speaking at a workshop to review the National Financial Education Campaign’s implementation in Accra, stated that, in contrast to popular assumption, next of kin status does not automatically confer legal rights to the funds of a deceased account holder.

The objective of the workshop was to enhance the financial literacy of Ghanaians and advance the cause of financial inclusion. Stakeholders from the banking and finance industries were in attendance.

Mr Donkor highlighted the role of the next-of-kin in the banking sector as primarily assisting institutions in reaching the account holder, especially in cases of dormant accounts or for necessary updates.

While acknowledging that a next of kin might be nominated, Mr Donkor explained that legal processes, including wills or letters of administration, play a crucial role in determining access to the funds.

Financial institutions, mandated by law, follow specific procedures when an account becomes dormant, making attempts to contact the account holder.

If unsuccessful, the institution may approach the next of kin to facilitate communication, with access to funds subject to legal scrutiny.

Mr Donkor emphasised the importance of accurate information about next of kin to contribute to robust financial ecosystems.

He pledged the BoG’s commitment to ensuring a well-informed and confident populace in financial matters.

Ms Patience Arko-Boham, the Head of the Pensions and Insurance Unit at the Ministry of Finance, reiterated the objective of the National Financial Education campaign.

The campaign aims to equip consumers of financial services for their unique socioeconomic and environmental conditions, emphasising the importance of accurate information and dispelling misconceptions.