Thailand weighs shorter visa-free stays amid nominee crackdown

Thailand’s visa-free entry policy, introduced to help generate tourism revenue, is coming under growing scrutiny amid concerns that it may be creating loopholes for foreign criminals, nominee businesses and grey capital to take root in the country.

Such security threats leave few warning signs until damage has already been done across several fronts. One issue now drawing public concern is the use of Thai nationals as nominees by foreigners seeking to operate businesses in Thailand, particularly in major tourist destinations.

Attention has increasingly turned to Koh Samui and Koh Phangan, where authorities are moving to examine suspicious business structures more closely.

Samui and Phangan first targets in nominee crackdown

Information from the Department of Special Investigation (DSI) and the Department of Business Development (DBD), based on data checks of companies in several tourist provinces, has found a large number of businesses at risk of operating through nominee arrangements.

Authorities say some networks use complex structures, with groups of foreigners allegedly seeking improper gains from national resources while showing little fear of the law and causing disruption to local communities.

The DSI and DBD will therefore begin their proactive checks in Koh Samui and Koh Phangan, which have been identified as the first target areas for inspection.

More than 11,426 companies will be analysed and classified by risk level — high, medium and low — to allow officials to plan inspections systematically and efficiently. Checks will begin with companies considered high-risk, while local residents will also be given channels to file complaints.

Offenders will face strict legal action, officials said, adding that the nominee-business crackdown is expected to expand to other key tourist areas, including Phuket, Krabi, Phang Nga, Pattaya and Hua Hin.

The Interior Ministry is also preparing to propose a committee mechanism at both national and local levels to strengthen coordination, integrate data among relevant agencies and improve the speed and consistency of official responses.

The proposed measures are intended to allow authorities to act more quickly and appropriately as economic and social conditions change, while ensuring that enforcement processes match the characteristics of each target group.

Chinese weapons suspect raises wider identity concerns

Another case now in the spotlight is the arrest of Mingchen Sun, a 31-year-old Chinese man, in the Na Jomtien police jurisdiction of Sattahip district in Chonburi province.

He was arrested after a vehicle accident in which his car overturned. Police later expanded the investigation to search a house in Soi Huai Yai, where they reportedly found military-grade weapons, firearms, high-powered explosive devices, anti-personnel and hand-thrown explosives totalling 10 items, as well as bomb components and a large quantity of fuel.

Authorities have linked the circumstances of the case to a transnational criminal network.

The focus has since shifted to Sun’s possession of documents connected to Thai civil registration records. Reports say his name appeared as a resident in a household registration at Soi Hathai Rat 37 in Sam Wa Tawan Tok subdistrict, Khlong Sam Wa district, Bangkok.

His identification number was reportedly the same as that used for a card issued to a person without Thai nationality. The records showed that he had moved from a house in Moo 9, Chiang Dao subdistrict, Chiang Dao district, Chiang Mai province, on November 14, 2023.

The discovery of a “pink card”, or an identity card for a person without Thai nationality, was also reported. Sun’s name was reportedly entered in a Chiang Dao household registration through brokers and some corrupt state officials.

Reports allege that nationality documents were being bought for 500,000 baht to 1 million baht, with officials using out-of-hours channels to prepare documents and using administrative household registrations as addresses in the system.

The network was allegedly organised, using fake birth certificates and hiring Thai nationals to act as “fake fathers” so foreign children could obtain Thai nationality from birth. This has raised concerns that such methods could be used to launder identities for future grey Chinese capital networks, allowing them to own assets and operate businesses in Thailand legally without raising suspicion.

At the same time, reports indicate that Sun took advantage of Thailand’s visa-free policy and long-stay visa categories to travel in and out of the country continuously from 2020.

Multiple passports were also reportedly found, including Chinese and Cambodian passports, as well as fake US and South Korean passports. Authorities suspect these were used to create new identities for illegal business activities and to avoid official scrutiny.

Government reviews 60-day visa-free stay

The issues have now become tied to Thailand’s visa-free policy, which was introduced under the government led by former prime minister Srettha Thavisin as part of efforts to revive the post-Covid economy and boost tourism revenue.

However, questions have increasingly been raised over the quality of tourist arrivals and whether allowing tourists to stay in Thailand for up to 60 days may be too long.

The current government has now begun to act, with incumbent Prime Minister Anutin Charnvirakul and Foreign Minister Sihasak Phuangketkeow reviewing whether the 60-day visa-free stay should be reduced to 30 days to tighten controls.

The proposal is being considered by relevant agencies and is expected to be submitted to the Cabinet for consideration next week.

Sihasak said visa arrangements were designed with good intentions, but Thailand may now have more visa categories than necessary. Officials must consider whether some categories can be merged and what criteria should apply.

He said the review must also look at cases where visas are used for purposes other than those intended, including long-stay visas, expert visas and soft-power visas. Any consolidation of visa categories would require careful study of the relevant rules, he added.

Thailand’s 60-day visa-free policy has undeniably helped attract visitors and generate income. But it has also been criticised as a potential loophole that allows criminals and foreign grey capital to use the country as a base for business, residence and criminal activity.

Although the government is trying to raise revenue during a difficult economic period, the risks now emerging suggest Thailand may need to ask whether the gains are worth the cost.