Money trail exposed — Koh Phangan nominee crackdown widens

Thai authorities are widening their investigation into suspected foreign nominee networks on Koh Phangan after uncovering company structures, land holdings and money trails that may point to foreign control of local businesses through Thai proxies.

The latest operation focused on 24 target locations on the island, including six luxury beachfront pool villas in Moo 7, Ban Chalok Lam, Koh Phangan subdistrict, Surat Thani province. Officials said the villas were linked to Israeli nationals and were being rented out for 30,000 baht per night, with a minimum stay of three nights.

Investigators found that the land was owned by a Thai national from Koh Phangan and had been leased to Taylor Villa Co Ltd for 30 years over a three-rai plot for 47 million baht. The case raised concerns after the tenant structure allegedly shifted from Thai control to full foreign involvement, prompting officials to examine whether the arrangement amounted to nominee ownership.

The Department of Business Development has found 4,761 registered legal entities on Koh Phangan, underlining the scale of the task facing authorities as they investigate whether Thai shareholders are being used as fronts to bypass restrictions on foreign business operations and land control.

The May 13 raids also included a law office suspected of helping facilitate property transactions for foreign groups. Officials said one person was found to be linked to shareholdings in as many as 80 to 90 companies, a pattern now being examined as part of the wider money-trail investigation.

The crackdown is part of a broader campaign against suspected nominee structures in Thailand’s major tourist destinations, including Koh Phangan, Koh Samui and Phuket. Nation Thailand previously reported that authorities had raided luxury villas, a law office and shops on Koh Phangan ahead of Prime Minister Anutin Charnvirakul’s visit to follow up on foreign nominee concerns.

According to Nation Thailand, Koh Phangan has come under particular scrutiny because about 67% of registered companies on the island, 3,213 out of 4,761, involve foreign investment, with Israeli investors accounting for the largest share, followed by French and British investors.

The Centre for the Suppression of Transnational Criminals and Illegal Immigration under the Royal Thai Police has also launched an operation targeting suspected foreign nominee networks on Koh Phangan. Authorities inspected 243 target companies, found 27 land plots with suspicious ownership patterns, and seized 37 title deeds covering 51 rai and 2 ngan, worth about 150 million baht.

Three arrest warrants were issued in the case. Two Thai suspects were arrested on charges of assisting, supporting or holding shares on behalf of foreigners, while one foreign suspect remains at large.

Prime Minister and Interior Minister Anutin Charnvirakul, who visited Koh Phangan on May 13, said the government was taking the issue seriously because the problem had become increasingly severe. He said Thailand welcomed foreign visitors and the income they brought, but would not allow anyone to take control of land belonging to local communities.

“Beaches belong to everyone,” Anutin said, adding that public areas must be managed in an orderly way and that local people should help monitor wrongdoing. He said authorities would work with local agencies to organise zoning where appropriate, provided such activities did not harm nature.

Nation Thailand also reported that Anutin had ordered officials to investigate whether Thai-registered firms were being used as shells to allow foreigners to control land and property businesses. He said the issue was not only about names on company documents, but who actually controlled the business and directed its operations.

“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.”

The Koh Phangan probe comes amid a wider national review of foreign business activity, nominee ownership and grey capital in tourist areas. Earlier, the government is also reviewing Thailand’s 60-day visa-free policy amid concerns it may create loopholes for foreign criminals, nominee businesses and grey capital to establish a foothold in the country.

Officials say legitimate foreign investment remains welcome, but nominee arrangements, unlicensed businesses and illegal labour practices will face stricter enforcement. The next test will be whether the government can turn the high-profile raids into sustained legal action against networks accused of using Thai names to control land, villas and tourism businesses on the island.