Commerce Ministry targets foreign nominees in 6 sectors
The Commerce Ministry has updated its nominee inspection strategy, focusing on six high-risk sectors. Auramon Supthaweethum, Director General of the Department of Business Development (DBD), stated that the agency is intensifying investigations into businesses suspected of using Thai nationals as nominees to conceal foreign ownership.
This initiative aims to address the issue of foreign-operated nominee businesses that affect investor confidence and the national economy.
The DBD has revised its inspection plan to target six high-risk sectors where foreign entities may illegally operate through Thai nominees.
These sectors include 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, with a particular focus on those holding foreign shares between 0.09% and 49.9%.
These inspections will be conducted in collaboration with relevant enforcement agencies. Between September 1, 2024, and March 31, 2025, authorities addressed 852 cases, with damages amounting to 15.1 billion baht.
Auramon highlighted that inspections are prompted by whistleblower reports and trends indicating potential nominee activities.
Notable areas include construction and real estate in Rama IX and Krungthep Kreetha, as well as restaurants in Huai Khwang, Rama IX, and Ratchadaphisek. Investigations also cover landholding for agricultural purposes in provinces such as Rayong and Chanthaburi.
In collaboration with the Anti-Money Laundering Office (AMLO), the DBD has completed draft amendments to the Anti-Money Laundering Act.
These amendments aim to penalise Thai nationals who facilitate, support, or act as nominees for foreigners operating businesses under the 1999 Foreign Business Act. Violations under Section 36 (nominee-related offences) and Section 37 (unauthorised foreign business operations) allow authorities to seize and freeze assets linked to both Thai and foreign persons involved in such businesses.
The amended law is open for public consultation until April 25. Stakeholders are encouraged to provide feedback to support the law, which seeks to strengthen Thai businesses, promote fair competition, and encourage legal foreign business operations in Thailand, reported Bangkok Post.
After the consultation, 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 approved, the Commerce Ministry, in conjunction with the Council of State, will work on amending the Foreign Business Act, focusing on shareholding ratios and business types that might hinder operations. Auramon emphasised the importance of gathering feedback from the private sector during this process.
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