Thai authorities are ramping up their investigations into suspected foreign nominee businesses, with Pattaya identified as a key area of concern regarding foreign ownership of companies.
The Department of Business Development and the Department of Special Investigation have initiated a comprehensive crackdown across the nation, starting with the tourist islands of Ko Pha-ngan and Ko Samui. This operation will soon extend to other popular tourist destinations, including Phuket, Krabi, Phang Nga, Pattaya, and Hua Hin.
This intensified action follows numerous complaints from local residents and business owners about foreign groups allegedly using Thai nominees to unlawfully control businesses and exploit tourism resources.
Authorities disclosed that over 11,426 companies associated with foreign interests on Koh Phangan and Koh Samui are currently under review. These businesses are being classified into high, medium, and low-risk nominee categories for further investigation.
The Department of Business Development has identified Pattaya as one of the most significant areas of concern, with approximately 19,910 companies featuring foreign shareholders, which constitutes nearly 60% of all registered businesses in the city. The largest foreign business groups in Pattaya include investors from China, the UK, Russia, India, and Germany.
The ongoing crackdown is not limited to nominee ownership; investigations will also examine potential violations, such as tourism licensing issues, breaches of labor laws, tax irregularities, and dubious property holdings.
The DSI has confirmed collaboration with anti-money laundering authorities to enhance enforcement capabilities, particularly following proposed legal revisions that would categorize nominee-related offenses as predicate crimes under anti-money laundering statutes. Officials believe this would facilitate better tracking of financial transactions and the seizure of assets linked to illegal activities.
Furthermore, Thai authorities noted that newly implemented company registration measures introduced earlier this year have already led to a significant decrease in suspected nominee registrations. However, they cautioned that enforcement efforts will now become more aggressive across major tourist areas.
Source: Pattaya Mail
