Thailand intensifies crackdown on nominee business networks
Officials say tougher data checks and legal measures are aimed at stopping company status being misused for money laundering and illegal business. (125 characters excluding spaces)
- The Thai government is intensifying its crackdown on "nominee businesses," where foreigners use Thai nationals as proxies to operate businesses illegally.
- The crackdown involves using technology to link databases, proactive investigations, and tighter laws to prevent money laundering and protect national economic interests.
- This initiative targets networks violating the Foreign Business Act 1999, with initial findings identifying over 6,500 potentially illegal foreign entities and a reported 60% drop in high-risk companies.
Government spokesperson Rachada Dhnadirek said the government was pressing ahead with a serious crackdown on “nominee businesses” by strengthening preventive measures, including data links, proactive follow-up investigations and tighter laws.
Technology is also being used to analyse and connect agency databases to screen legal entities at risk of operating illegal businesses.
The key aim is to prevent the misuse of legal-entity status for money laundering and illegal business operations, while building a transparent business system that can compete fairly in the long term.
Since operations were upgraded on Thursday (January 1, 2026), high-risk nominee companies fell by as much as 60% in the first quarter of 2026 compared with the same period last year.
Most recently, the Department of Business Development reported the results of inspections into suspected legal entities.
It found cases in which foreigners held shares of 50% or more and allegedly operated businesses listed in the annexes to the Foreign Business Act 1999 without permission, which may constitute a legal offence.
Initial findings showed that 6,551 foreign legal entities had entered Thailand to operate businesses without permission and may have violated the law.
Offences under the Foreign Business Act 1999 carry a prison term of up to three years, a fine of THB100,000 to THB1,000,000, or both.
Those who are involved in, aware of, or fail to prevent an offence may also face prosecution as accomplices.
“Prime Minister Anutin Charnvirakul is pushing ahead with operations to crack down on all forms of illegal business, scammers, nominees and grey capital, especially the use of nominees. The operation targets networks that use Thai nationals as ‘nominees’ to conduct transactions on behalf of foreign capital groups, such as operating businesses reserved for Thais, holding land, and businesses linked to grey business operations. The Prime Minister has made it clear that ‘there will be no clearing of cases; decisive action will be taken in every case’ to protect economic interests and safeguard national security. Members of the public can report information or seek further details via hotline 1570,” the government spokesperson said.
