FNM renews call for banking reform as $128M sits in dormant accounts

NASSAU, BAHAMAS- The Opposition is renewing its call for urgent banking reform in The Bahamas following the revelation that more than $128 million remains locked away in over 45,000 dormant accounts. The Free National Movement (FNM) says the government has failed to address what it describes as a growing injustice to Bahamian families who are being denied rightful access to funds that represent decades of hard work, savings, and legacies.

Opposition Leader Michael Pintard, in a strongly worded statement, said: “These aren’t just numbers—these are wages, savings, and inheritances left behind by Bahamians who worked hard their entire lives. We must modernize how we conduct banking affairs to have it work in the interest of Bahamian customers. The FNM has consistently called for reforms to improve financial access and equity for Bahamians, particularly those in the Family Islands, where commercial banking services have vanished and many struggle to access even basic financial services. We are operating in a system that quietly punishes the very people who built this country. That’s not just inefficient. That’s unjust.”

The Central Bank of The Bahamas (CBOB) reported in its 2024 Annual Report and Statement of Accounts that the total value of dormant accounts reached $128 million by the end of last year. The funds are held across 45,780 dormant accounts and denominated in five currencies, with U.S. and Bahamian dollars making up more than 92 percent of the total.

Dormant accounts, defined by law as those inactive for seven years, must be transferred to the Central Bank for safekeeping until claimed by rightful owners. However, under legislation amended in 2018, funds held for more than ten years—except for balances under $500, which are automatically transferred—may be handed over to the government for use in emergencies. At the close of 2024, $5.8 million in dormant funds was due to be transferred to the Public Treasury.

The dormant account balances have surged in recent years—from $88 million in 2022 to $99 million in 2023—before jumping to the current $128 million. While the number of accounts in Bahamian dollars remains the largest by volume, the bulk of the value in 2024 was in U.S. currency, totaling $74 million, compared to $45 million in Bahamian funds.

Calling for swift legislative changes, the FNM proposes reforms that would require all banks to allow account holders to name beneficiaries, a move the party argues would significantly reduce the number of dormant accounts and prevent families from enduring prolonged court proceedings to access inherited funds.

Pintard insisted that such reforms are both practical and humane: “The Free National Movement is proposing a straightforward, people-first solution: require financial institutions to offer all account holders the option to name a beneficiary. This practice, already adopted in many modern economies, ensures that funds can be transferred directly to a loved one without lengthy court battles.”

He added that under an FNM administration, the law would be amended to mandate a clear due diligence and public notification process for dormant accounts, along with a simplified and expedited path for verified beneficiaries to access those funds. He drew a contrast between the Opposition’s proposals and what he described as the government’s misplaced focus.

“While the PLP continues to waste public funds on celebrations and distractions, we are focused on practical solutions that give Bahamians access, dignity, and opportunity. This is a test of priorities. The PLP continues to build a Bahamas for the few, but the FNM is fighting for a Bahamas that works for you,” Pintard said.

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