Wealth is not defined by the assets one merely acquires; it is the assets one safeguards and successfully transmits to the next generation. Until property is preserved and transferred without liability or forfeiture, it cannot properly be regarded as wealth.
In today’s compliance driven financial environment, there is a likelihood that individuals and entities are classified under certain categories that influence how their assets are treated during scrutiny. Understanding these categories, and the risks attached, is the first step in wealth protection.
Classifications That Influence Asset Exposure
- Politically Exposed Persons (PEPs)
- Sanctioned Persons
- High-Risk Individuals (HRIs)
- Adverse Media Subjects
- Shell Companies/Front Entities
- Money Mules
- High-Risk Third Parties
- Hidden Beneficial Owners
- Organized Crime Affiliates
- Repeat Fraudsters/Defaulters
- Tax Evaders
- Cybercrime Actors
- High-Cash/High-Risk Businesses
- Relatives and Close Associates (RCAs)
Falling into these categories does not automatically make anyone guilty of misconduct. However, it determines the level of scrutiny an individual or corporation may be subjected to, which often comes with both advantages and disadvantages.
While some people fall into two or more categories, no individual with information about the category a person falls into will expressly disclose it. It is usually known by fraud risk management officers, investigators, the NFIU, and top financial regulators.
Why Assets Become Vulnerable
Civil litigation and criminal investigations whether justified or politically motivated, frequently involve inquiries into financial holdings and proprietary interests. In Nigeria, law enforcement agencies often compel individuals under investigation to complete Assets Declaration Forms, a seemingly harmless process, yet one of the most dangerous documents to fill in the custody of investigative authorities, particularly the EFCC.
Assets are not always lost through convictions. More often, they are dissipated due to poor structuring, weak legal protection, or failure to anticipate risk. Forfeiture, interim restrictions, or asset freezes can occur without conviction, especially when assets are not adequately shielded.
Proven Strategies to Protect Wealth
- Digital Assets
Saving in digital assets can provide insulation from liabilities. - Trusts
Trusts reduce vulnerability to personal liabilities, provided they are properly constituted and shielded. - Foundations & Non-Profits
Charitable and philanthropic structures can preserve wealth while lawfully serving social good. - Corporate Veils
Holding assets through companies or SPVs creates legal veils from liability, however, the veil must be strong enough not to be lifted. - Insurance Instruments
Life insurance, annuities, and asset-backed insurance can safeguard intergenerational wealth. - International Diversification
Lawful offshore accounts, family offices, holding companies, trusts and legally structured property holdings in stable foreign jurisdictions can protect against arbitrary local forfeiture. - Prenuptial & Postnuptial Agreements
While a stable marriage is the best safeguard, structured prenuptial and postnuptial agreements provide legal clarity and protect assets in the event of disputes. - Intellectual Property (IP) via DSPs
Assets can be transformed into IP, preserved digitally, and monetized securely. The structuring requires technical expertise and bespoke strategies. - Succession & Estate Planning
Succession instruments ensure orderly transfer of wealth to rightful beneficiaries. - Joint Business Ownership & Partnerships
Well-structured partnerships reduce exposure and strengthen continuity.
Wealth is not an exercise in concealment, it is an exercise in foresight and strategic legal structuring. True wealth lies not merely in acquisition, but in preservation, insulation, and intergenerational transfer
Pelumi Olajengbesi, Esq.
Managing Partner, Law Corridor
Member, Family, Succession & Wealth Management (FSW) Practice Group
pelumi@lawcorridor.org
www.lawcorridor.org
24th August, 2025.
