BoG Clarifies Role of Next-of-Kin in Bank Account Access

The Bank of Ghana (BoG) has made it clear that being designated as the next of kin on a bank account does not grant automatic access to the account holder’s funds in the event of the account holder’s death.

According to BoG, the next of kin is merely a nominee who serves as a primary contact when the bank is unable to reach the account holder, rather than someone who inherits the account.

Speaking at a two-day media capacity-building workshop in the Ashanti Region, Mr. Augustine Amoako Donkor, Assistant Director of the BoG’s Financial Stability Department, explained that the next-of-kin concept is primarily for tracing the whereabouts of an account holder. The next of kin is often a close relative or trusted individual who knows the account holder well.

However, to access the funds after the account holder’s death, one must be named as a beneficiary in the deceased’s will or go through legal processes.

The workshop, which brought together 25 journalists, aimed to enhance understanding of BoG’s operations and boost financial reporting skills. Participants were trained in microeconomic analysis, monetary policy practices, and interpreting financial indicators. Discussions also covered the developments in Ghana’s foreign exchange market and inflation dynamics.

Mr. Donkor emphasized that a bank customer has the right to choose anyone—whether a relative or friend—who is well acquainted with them as the next of kin. The nominee’s role is to provide information on why the account holder may be unreachable, but this designation does not translate into legal ownership of the account.

In cases where the account holder dies, access to their funds depends on whether they left a will. If a will exists, the named beneficiary must go through the courts to obtain a probate, which grants them legal authority to manage the deceased’s account. If the deceased died without a will, interested parties must apply for Letters of Administration from a court to administer the estate.

Mr. Donkor noted that while this next-of-kin practice has become a tradition in Ghana, it is not yet enshrined in the country’s laws. As such, this informal understanding will likely continue until legal provisions are made to clarify the role and responsibilities of next of kin in banking operations.

Source:norvanreports.com