Dept expands nominee probe to 17,000 firms in 12 sectors
THE BUSINESS Development Department will this year expand its investigation into the use of Thai nationals as nominees of foreign-controlled companies, covering more than 17,000 companies in 12 sectors where the illegal practice is suspected of being widespread.
Three business sectors – tourism, land and property trading, and agricultural-products trading – will be highlighted and stringently investigated, as the department says it has found foreigners to be increasingly involved in such businesses via Thai nominees.
Director-general Bangjongjitt Angsusingh said that under its 2017 plan, the agency would tackle the practice vigorously through stringent law enforcement in a bid to prevent violations of the Foreign Business Act.
Moreover, the department will extend its investigation of nominee cases to 12 business sectors in total, the other nine being: food and beverages, property rental, car rental, spas, handicraft and souvenir retailing, Internet retailing, direct sales, the trading of medicines, herbs and supplements, and education consultants.
She said the 12 sectors would be targeted because it was believed that a high proportion of their businesses were foreign-controlled through the use of Thai nominees.
Her department will stringently investigate those businesses in an effort to prevent Thai enterprises and consumers being negatively affected, as some foreign-owned businesses were engaged in unscrupulous activities to lure consumers.
Each inspection will focus on a business’ share structure, investment capital and technology transfer, Bangjongjitt added.
This year, the provinces that will be closely monitored for nominee businesses include Bangkok, Chon Buri, Surat Thani, Prachuap Khiri Khan, Chiang Mai, Phuket, Krabi, Trat (Koh Chang), Chiang Rai, Chanthaburi, Rayong, Lampang, Lamphun, Phetchaburi, Chumphon and Ranong.
