Anutin orders probe into foreign nominee networks on Koh Phangan

PM inspects suspected nominee case on Koh Phangan

Prime Minister and Interior Minister Anutin Charnvirakul has ordered authorities to investigate suspected foreign nominee structures on Koh Phangan, after officials found that Thai-registered companies may have been used as shells to allow foreigners to control land and property businesses in breach of the spirit of Thai law.

Anutin, accompanied by ministers and senior officials, visited house No 39/15, Moo 7, Ban Chalok Lam, Koh Phangan subdistrict, Surat Thani province, the registered location of Taylor Villa Co Ltd.

The delegation held talks with local officials and agencies responsible for Koh Phangan in front of a pool villa that authorities said had been built illegally.

Pol Gen Samran Nuanma, deputy national police chief, briefed the prime minister on the case, saying the pool villa was allegedly linked to an Israeli national and was part of a wider operation to crack down on foreign nominee structures on Koh Phangan.

Authorities told to trace shareholders and money flows

Anutin said authorities must first prove whether the company’s shareholders were foreigners, adding that any arrangement allowing foreigners to control land through Thai nominees would violate the principle of Thai law.

He said those involved were aware they had no right to own land in Thailand, but allegedly used nominee arrangements to buy land while presenting the business as a Thai company.

The prime minister also instructed officials to examine the company’s financial trail.

He said the issue was not only about land ownership on paper, but about who actually controlled the company and directed its business operations.

Focus on shell firms, not just illegal construction

Asked whether he had given specific instructions on nominee cases on Koh Phangan, Anutin said the purpose of his visit was to examine the nominee issue.

He said questions over whether the land encroached on protected areas would be handled separately by the Ministry of Natural Resources and Environment and the Department of Lands.

“The issue today is the opening of companies and the sale of those companies. Foreigners are allowed to hold no more than 49% of shares, but several companies have been set up in cross-holding structures, making them appear to still be Thai,” Anutin said.

“In reality, however, the control and direction of the company are 100% foreign. This is against the spirit of Thai law,” he added.

Thai ownership in name only, PM warns

Anutin said any company holding land in Thailand must have at least 51% Thai ownership. However, he warned that some companies appeared to have Thai shareholders in name only, while actual control remained with foreigners.

He said such arrangements were equivalent to disguising foreign control under a Thai corporate appearance.

“The company may still appear to exist as Thai, but Thai control gradually disappears. In the end, foreigners are still the ones making the decisions. We have to fix this,” he said.

One person allegedly linked to more than 200 companies

Asked whether lawyers or advisers had helped set up such structures, Anutin said companies normally had consultants for accounting and business operations.

He said a company must have seven founders, Thai shareholders must hold more than 50% of the capital, and if these requirements were properly met, the Commerce Ministry would allow registration.

However, he said the case being examined appeared to involve a different intention.

He said one person was allegedly linked to more than 200 companies, raising concerns that company shells may have been sold as a service to allow foreigners to conduct business and control assets in Thailand.

“This is the sale of company shells, allowing foreigners to operate businesses in a way that goes against the spirit of the law,” Anutin said.

Police to examine possible laundering of foreign funds

Anutin said he believed legal action could be taken if investigators found evidence of wrongdoing.

He said police would look into the source of funds to determine whether foreign money had been brought into Thailand and converted into land ownership through company structures.

The prime minister said authorities must prevent such arrangements from being used to allow foreigners to control land, hire others to act on their behalf and operate businesses in ways that undermine Thai law.

“We have to block this kind of arrangement and prevent it from happening,” he said.