In fiscal 2024, 26,019 Thai businesses were linked to potential nominee activity; 498 remain under investigation, with 64 charged for violations, amidst broader scrutiny of foreign business practices.
Key Points
- In fiscal 2024, 26,019 businesses in sectors like tourism, real estate, and logistics were flagged for potentially involving Thai nationals as nominees for foreign shareholders, according to Oramon Sapthaweetham of the Business Development Department.
- Following screenings, 498 businesses are under investigation, with 371 cleared, 64 charged with accounting violations, and 63 cases, including four suspected nominee activities, still being examined by law enforcement.
- The department is broadening investigations due to public complaints about foreign businesses violating Thai laws, particularly in sectors like online platforms, logistics, and construction, with penalties for nominee activities including imprisonment and significant fines.
In fiscal 2024, the Thai Business Development Department identified 26,019 businesses across four key sectors—tourism and related services, real estate and land trading, hotels and resorts, and logistics and transportation—that potentially involve Thai nationals acting as nominees for foreign shareholders. Oramon Sapthaweetham, the department’s director-general, disclosed that these businesses are situated across six provinces, including major economic hubs such as Bangkok, Surat Thani, Prachuap Khiri Khan, Chiang Mai, and Phuket.
Upon conducting a comprehensive screening process, the department narrowed down these businesses to 498 that are still under investigation. Notably, 371 businesses have been exonerated due to insufficient evidence of risk, while 64 cases have been implicated in accounting violations and subsequently referred to the Revenue Department for additional inquiries. Among the remaining cases, 63 are under suspicion of nominee activities in provinces including Bangkok, Surat Thani, and Prachuap Khiri Khan, with ongoing investigations expected to culminate in referrals to law enforcement agencies for further examination.
Furthermore, the department has broadened its investigative scope to encompass other sectors, responding to public complaints regarding the proliferation of low-quality, inexpensive foreign goods in the Thai market. Issues have been raised regarding the operations of foreign entities that may be violating Thai laws, particularly in sectors relating to online platforms, warehousing, logistics, steel trading, and construction. Recent collaborative inspections with the Bangkok Metropolitan Administration in areas like Huai Khwang and Sampheng have heightened concerns regarding the legality of certain business operations.
Violations related to nominee activities can incur severe penalties, including imprisonment for up to three years or fines ranging from 100,000 to 1,000,000 baht, underscoring the government’s commitment to enforcing business regulations and ensuring compliance with local laws.
