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State crackdown prepared for foreigners using Thai nominees

The Commerce Ministry has drafted a plan to deal with foreign businesses that use Thai nominees to operate in the country.
Deputy Commerce Minister Napintorn Srisunpang said the ministry’s subcommittee on nominee business prevention and suppression held a meeting on Wednesday with related agencies to discuss measures to investigate and pursue legal action against companies suspected of using Thai nominees.
Joining the session were representatives from the Department of Business Development (DBD), Department of Special Investigation, Central Investigation Bureau, Anti-Money Laundering Office (Amlo), Tourist Police Bureau, Immigration Office, Department of Employment, Department of Tourism, Department of Lands and Revenue Department.
The meeting approved plans for the short, medium and long term for proposal to the Committee on Foreign Product and Business Compliance and the cabinet.
For the short-term plans, related agencies will use existing laws to monitor, investigate and interrogate businesses suspected of using a nominee, as well as pursue legal action against nominees, said Mr Napintorn.
In the medium term, the DBD plans to develop a system to analyse the behavioural trends of businesses in Thailand, aiming to detect irregularities that indicate the use of nominees. The department also wants to promote more stringent law enforcement.
This system is expected to be completed within six months, he said.
For the long term, the ministry is considering amending relevant laws of Amlo to allow the DBD to refuse or revoke business registration if companies are deemed high-risk under anti-money laundering or related laws.
Mr Napintorn said the department can currently deny business registration for two reasons: when the company directors are bankrupt or legally incompetent.
“We will also consider amendments to the Foreign Business Act to increase penalties for nominee practices, aiming to deter such illegal actions,” he said.
Following complaints about foreign businesses violating Thai laws, the DBD is broadening investigations, particularly for online platforms, warehousing and logistics, with penalties for nominee activities including imprisonment and significant fines.
“The government is treating nominee practices as a top priority, as it harms Thai businesses and damages the economy,” said Mr Napintorn.
“I urge Thais involved in nominee practices to stop this behaviour and forward any information to the authorities. They will be protected as witnesses, which will reduce the severity of the offence.”

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