[ 2016-08-17 ]

Nana Otuo Acheampong

Experts laud policy to allow gov't take possession of dormant deposits
A bill to allow government take possession of
dormant accounts lodged in both deposit taking and
non-deposit taking financial institutions has
received the endorsement of two banking experts.

Nana Otuo Acheampong, a banking consultant and
Executive Director for Osei Tutu II Centre for
Executive Education and Daniel Enim Prempeh of the
Institute of Certified Economists say the proposed
law will promote Ghana’s banking sector.

The Unclaimed Assets Law will establish an
authority – the Registrar of Dormant Account –
which will manage the assets and also proactively
locate beneficiaries or their next of kin, instead
of leaving them in the banking and other financial
institutions.

Nana Otuo Acheampong and Daniel Enim Prempeh were
speaking Tuesday on current affairs programme, PM
Express on the Joy News channel on Multi TV.

Shedding light on the proposed law, Nana Otuo
Acheampong said any account that has not been
operated for two years will be classified as
dormant and will subsequently be moved into a
special account managed by the Registrar of
Dormant Account.

“There has been cases in the past that accounts
have gone dormant and by the time [depositors]
realize there is nothing left because charges have
eaten whatever credits that there were.

“What the new bill is saying that when it goes
to the Registrar of Dormant Account all charges
cease, so at that point if there are any
outstanding charges or any interest to be
credited, they will do it and then balance is
struck.

“That balance then stays with the deposit taking
institution for another three years. After the end
of the third year, that institution should cause
your full name and your last known address to be
published in two newspapers in national
circulation,” he explained.

Daniel Enim Prempeh also said the bill will
protect depositors.

“Once the money gets to the central bank [which
will oversee the Registrar of Dormant Account] it
is safe. The central bank is there forever. It is
a policy that will really help,” he said.

He however said government must begin early
education about the bill to gain the support of
banking public.

Mr Prempeh also adds that the bill will prevent
the temptation by banks and their staff from
deliberately hiding unclaimed balances.

Finance Minister, Seth Terkper, announced the bill
during his presentation of the subsidiary budget
to Parliament in July.

“The unclaimed assets programme, to be launched
soon, is a programme for managing assets or funds
that are presumed to be abandoned, stranded and
remain unclaimed by their owners,” he said

These unclaimed funds include balances on dormant
accounts, with banks and other deposit taking
institutions including dividends, interests,
redemption proceeds, insurance premiums and
pension entitlements.

He said countries like Ivory Coast and Kenya have
successfully implemented the policy to boost their
coffers.

The bill is currently before the Attorney
General’s Department for drafting and subsequent
forwarding to cabinet and parliament for
consideration.

Source - Myjoyonline.com

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