Next of kin has no automatic access to bank account

• Journalists that participated in the BoG workshop

 It is belief of many that the next of kin of a bank account automatically has access to funds if the account holder dies.

But this is not exactly so, because the next of kin is only a nominee of the ac­count holder who serves as a primary contact in the event where the bank is not able to reach out to the account holder.

This came to light at a training programme organised by the Bank of Ghana (BoG) for some selected journalists in Kumasi.

Assistant Director, Financial Stability Department of the BoG, Mr Augustine Amoako Donkor, explained that the next of kin concept in the banking sector or operation is to trace the whereabouts of an account holder and not who inherits the account.

“If you are made the next of kin of a bank account by a friend or relative, then know that you do not have automatic access to the funds in the account should the account holder dies.

The next of kin should know a lot about the account hold­er and that is why in practice, many people will use their close relatives,” he said.

He explained that a custom­er of the bank has every right to choose a friend who knows much about him/her to be the next of kin “because the main purpose of choosing a next of kin is to provide information on why the account holder is not reachable.”

Mr Donkor said process­es to retrieve funds in an ac­count of a de­ceased custom­er was a whole different issue when estab­lished that the account holder had died.

The two-day residential pro­gramme took participants through micro­economics stability, monetary policy practice in Ghana, inflation dynamics in Gha­na, development in foreign exchange markets, concept of next of kin, among others.

It sought to deepen the understanding of participants in the operations of BoG and also build their capacity in financial reporting.

But, the journalists were amazed to learn during a presentation on the main traditional sources of foreign exchange supply to Ghana that remittances are the driv­ing force of the economy.

In the presentation, it was observed that in 2023, Ghana received US$5.1 billion from remittances, and as of June 2024, US$3.5 billion had been received.

Although the year 2024 was yet to end, that figure has been projected to increase as relatives and friends send money to family members ahead of the Christmas cele­brations.

 From Kingsley E. Hope, Kumasi