Trusts have been in use for decades in Nigeria as business and investment tools, vehicles for the execution of philanthropic projects for estate and succession planning, family wealth preservation and other legitimate purposes. Trusts had operated within a framework of applicable trust laws, sector specific regulation and the obligations applicable to financial institutions and professional service providers.
The Legal Arrangements (Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction (AML/CFT/CPF), Regulations 2024 (the “Regulations” or “LAR”) represent a very important change to this landscape, introducing a dedicated and centralised framework for the registration and beneficial ownership transparency of express trusts and other legal arrangements, bringing Nigeria’s framework in line with international legal trends, regulations and best practice. With the LAR, Nigeria has joined a growing number of jurisdictions that have introduced statutory mechanisms for the registration and/or disclosure of information concerning trusts and other legal arrangements. These include the United Kingdom, which operates the Trust Registration Service, as well as various EU Member States that maintain beneficial ownership registers for trusts and similar legal arrangements. Within Africa, jurisdictions including Botswana, Kenya and South Africa have also established mechanisms for the registration and disclosure of information relating to trusts and their beneficial ownership.
