Commerce targets nominee and proxy accounts, 21,459 companies to be checked
Ministry of Commerce, in collaboration with 17 agencies, cracks down on nominee and proxy accounts, targeting over 21,000 companies for investigation
The Department of Business Development (DBD), under the Ministry of Commerce, is working in coordination with 17 government agencies to investigate and prevent the use of Thai nationals as nominees by foreign investors. This collaborative effort targets over 21,459 companies suspected of breaching laws that prohibit foreigners from owning land and property in Thailand.
This new initiative is in line with the Municipal Ordinance on the Control of Foreign Business Ownership (2019), which seeks to ensure that businesses and property ownership in Thailand are in compliance with the law. The aim is to curb the practice of using Thai nationals as fronts to hold land or assets for foreign nationals, which undermines fair business practices and can harm the country’s economic stability.
Key Actions in the Crackdown:
The Commerce Ministry is focusing on improving transparency and efficiency in checking nominee practices.
The 17 agencies involved include the Department of Livestock, Revenue Department, and Public Prosecutors, among others, working together to gather data and investigate suspicious activities. The ministry plans to use technology and databases to track ownership structures and land holdings, ensuring that all foreign business operations in Thailand are legal.
Penalties for Violators:
The Ministry emphasizes that those found violating these laws will face strict legal action. Foreigners or Thai nationals who assist in using nominee accounts will be prosecuted under Thailand’s Foreign Business Act (1999).
Violators may face penalties including imprisonment for up to 3 years, fines of THB 100,000 to 1,000,000, or both. Additionally, businesses that fail to comply with court orders may face daily fines ranging from THB 10,000 to 50,000 until compliance is achieved.
The government is urging the public to be aware of the legal implications of supporting nominee practices, stressing that anyone found enabling these activities will be held accountable. The Commerce Ministry is committed to working with its partners to ensure a fair and lawful business environment in Thailand.
