The Ministry of Commerce has revised its strategy for inspecting the use of Thai nominees by foreign business operators by targeting six high-risk sectors.
Auramon Supthaweethum, director-general of the Department of Business Development (DBD), said the agency is stepping up investigations of entities suspected of using Thai nationals as nominees to hide foreign ownership.
This initiative is designed to tackle the issue of foreign-operated nominee businesses that undermines investor confidence and harms the country’s economy.
The DBD has updated its inspection plan, targeting six high-risk sectors where foreign entities may illegally operate through Thai nominees.
These sectors comprise tourism-related businesses such as restaurants, souvenir shops and entertainment venues; real estate and land trading; e-commerce, logistics and warehouses; hotels and resorts; agriculture-related businesses; and general construction.
The DBD plans to inspect 46,918 business entities, focusing particularly on those with foreign shareholdings ranging from 0.09% to 49.9%. Inspections will be carried out in collaboration with relevant enforcement agencies.
From Sept 1, 2024 to March 31, 2025, authorities took action in 852 cases with damages totalling 15.1 billion baht.
Mrs Auramon said the inspections are driven by whistleblower reports and trends that suggest potential nominee activities. For example, construction and real estate businesses in areas such as Rama IX and Krungthep Kreetha, and restaurants operating in Huai Khwang, Rama IX and Ratchadaphisek.
Investigations also extend to cases of landholding for agricultural purposes in provinces such as Rayong and Chanthaburi.
The DBD, working with the Anti-Money Laundering Office (Amlo), has finalised draft amendments to the Anti-Money Laundering Act. Key provisions in these amendments aim to penalise Thai nationals who facilitate, support, or act as nominees for foreigners operating businesses listed under the 1999 Foreign Business Act.
Violations under Section 36 (nominee-related offences) and Section 37 (unauthorised foreign business operations) empower authorities to seize and freeze assets linked to both Thai and foreign individuals engaged in nominee businesses and unauthorised foreign operations.
The amended law is available for public consultation at https://law.go.th until April 25. Interested parties are encouraged to share their feedback to support the law, which aims to strengthen Thai businesses, promote fair competition, and encourage legal foreign business operations in Thailand.
After the consultation period, Amlo will present the draft to the cabinet for approval, before submitting it to the House of Representatives and the Senate for further consideration.
Once the cabinet approves the principles and directs the Ministry of Commerce to look into amending the Foreign Business Act, the ministry in parallel with the Council of State will focus on updating the law with an emphasis on shareholding ratios and the types of businesses defined within it, which might hinder business operations, said Mrs Auramon.
She said gathering feedback from the private sector during this process is important.