Phuket: The Department of Business Development, in collaboration with the Royal Thai Police, conducted a sweeping investigation into nominee ownership in Phuket and Krabi, discovering 66 companies suspected of using Thai nationals as nominees for foreigners. This is linked to land and real estate holdings valued at over 730 million baht. The investigation is being expanded to include an additional 623 suspected companies in four southern provinces.
According to Thai News Agency, Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, revealed that he, along with M.L. Phuthong Thongyai, Deputy Director-General of the Department of Business Development, led a team to crack down on nominee activities in Phuket and Krabi provinces. This operation, in collaboration with the Royal Thai Police, was titled 'Phase 3: Dismantling Foreign Nominee Networks in the Andaman Coast,' and aimed to investigate businesses potentially violating the Foreign Business Act B.E. 2542 (1999). The Department of Business Development provided in-depth information on corporate registration, shareholder structures, and financial statements to support the investigation and further expansion of the scope of the inquiry.
The investigation revealed that in Phuket province, there were 10 companies suspected of acting as nominees, involved in the ownership of four plots of land valued at approximately 116 million baht. Additionally, 39 other companies were found to have shareholder structures requiring further investigation regarding their ownership of 52 plots of land valued at approximately 115 million baht. The total value of related assets exceeds 231 million baht.
In Krabi province, nine companies were found to be acting as nominees, holding 17 plots of land valued at approximately 209 million baht. Additionally, eight more companies require further investigation regarding their ownership of eight plots of land valued at approximately 290 million baht. The total value of related assets exceeds 499 million baht.
The Director-General of the Department of Business Development stated that the investigation also revealed several suspicious patterns of activity, particularly in the hotel, real estate, restaurant, and service sectors where foreigners were managing or controlling the businesses but using Thai names to hold shares on their behalf. Officials are currently gathering evidence to prosecute and expand the investigation to include more individuals involved.
In addition, the Department of Business Development is preparing to send information on another 623 companies in Surat Thani, Phuket, Krabi, and Phang Nga provinces to a special task force of the Royal Thai Police for investigation. This follows the discovery of connections to supporting or facilitating foreigners in committing offenses through nominees, including accountants who may be involved in such offenses.
Mr. Poonpong stated that using Thai nationals to hold shares on behalf of foreigners distorts the economic system, creates unfair competition, and negatively impacts Thai businesses. The Department of Business Development will continue to integrate information and work closely with relevant agencies to investigate, verify, and prosecute offenders decisively, expanding the investigation to related networks nationwide.
Thailand remains open to legal foreign investment but will take decisive action against those who use Thai nominees to circumvent regulations or seek illicit gains.