Over 1,000 detained in Thai nominee crackdown on foreign businesses
Police intensified their crackdown on the use of Thai nominees by foreign businesses, resulting in the detention of over 1,000 individuals over recent weeks. This sweeping operation was a joint effort by police and the Ministry of Commerce, targeting companies engaging in illicit business practices.
Investigations focused on 442 companies, collectively handling over 3.6 billion baht (US$105 million), across 46 locations nationwide. The Central Investigation Bureau’s (CIB) commissioner, Jirabhop Bhuridej, highlighted the scale of the operation, emphasising the collaboration with the Department of Business Development (DBD) within the Ministry of Commerce.
Among those detained were 714 Thais, 258 Chinese, 21 Malaysians, four Cambodians, four Vietnamese, three Britons, three Germans, two Japanese, two Myanmar nationals, one American, one Singaporean, and one person from Kazakhstan. These individuals were implicated in businesses registered by Thais acting as proxies for foreign nationals, despite restrictions that reserve certain business activities for Thai citizens.
“The businesses involved held assets worth 254 million baht (US$7.4 million), and investigations revealed they employed law or accounting firms to manage their registrations,” explained Jirabhop. This elaborate setup was part of a broader scheme where some companies were merely fronts for laundering money, without engaging in legitimate business operations.
Further inquiries uncovered warehouses filled with goods, many of which were prohibited from import. Some businesses were linked to currency trading, adding another layer of complexity to the investigation.
Napintorn Srisanpang, Deputy Commerce Minister, noted the operation stemmed from an agreement between the police and the DBD to scrutinize Thai nominees. He called upon Thai citizens to act as proxies to cooperate with police, allowing them to be treated as witnesses.
Additionally, legal and accounting professionals found complicit in these activities will face scrutiny from their respective regulatory bodies, reported Bangkok Post.
“The use of Thai proxies not only undermines the economy but poses a significant threat to national security,” stated Deputy Police Chief Thatchai Pitaneelabutr. He stressed the severity of the issue, particularly when these firms are linked to call centre scams or drug trafficking networks.
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