Thai Government Intensifies Crackdown on Foreign Businesses Using Thai Nominees

The Thai government is set to intensify its efforts to crack down on and prevent the practice of foreign individuals and entities using Thai citizens as "nominees" to operate businesses within the country. The new measures will take effect on August 1st. According to Lalida Phetwuttana, Deputy Government Spokesperson for the Prime Minister's Office, the current administration led by Prime Minister Anutin Charnvirakul aims to protect legitimate businesses and ensure fair competition by strengthening the crackdown on "nominee" practices, where foreigners use Thai nationals as fronts for their business operations. The new review system will move beyond basic information checks to incorporate in-depth analysis of detailed data, including information from company registrations, shareholder structures, financial statements, accounting data, and other relevant sources. This is intended to more accurately identify companies that may be involved in nominee schemes, enhance the efficiency of law enforcement, and reduce the impact on businesses operating in good faith. In cases where suspicious information or behavior is detected, authorities may request additional documentation and financial transaction records (such as bank statements) from Thai shareholders or related parties. This is to verify the source of investment funds and ensure consistency with declared shareholding proportions. Reviews will be conducted on a case-by-case basis, with a strong emphasis on evidence and facts. The deputy spokesperson emphasized that these measures are not aimed at foreign investors as a whole, nor are they intended to create obstacles to foreign investment. Instead, they are designed to use financial information and transaction flows to distinguish between businesses operating legally and those that exploit nominee structures to circumvent the law. This approach will lead to more precise, transparent, and fair law enforcement. "The government prioritizes fostering a transparent and fair investment atmosphere while rigorously enforcing the law against wrongdoers. This enhanced scrutiny will protect honest Thai businesses and investors, build confidence in the economic system, and ensure that competition operates under the same set of rules," stated Deputy Spokesperson Lalida. Source: INN News