Department of Lands told to tighten checks on nominee deals

Prime Minister and Interior Minister Anutin Charnvirakul has ordered the Department of Lands to step up its crackdown on Thai nominees used to hold land on behalf of foreigners, with officials told to tighten scrutiny at every stage of land transactions nationwide.

Anutin expressed concern over the growing issue of land being held on behalf of foreign nationals through so-called “nominee” arrangements, which have caused anxiety among people in several areas over land prices and Thai citizens’ access to national resources.

He instructed the Department of Lands to strengthen inspection and supervision measures for land-related transactions across the country. The move is aimed at preventing Thai nationals from being used as proxies to conceal foreign land ownership, as well as blocking the misuse of legal loopholes for improper gain.

Following the order, the Department of Lands issued an urgent letter to all provincial governors, asking provinces to inform relevant officials and coordinate with relevant agencies to strictly follow official guidelines on measures to prevent landholding on behalf of foreigners.

The department also called for public awareness campaigns to help people understand the issue and avoid cooperating in nominee arrangements. Members of the public who witness suspected wrongdoing are being encouraged to report information to relevant state agencies so action can be taken under their authority.

The letter also urged support for operations by the Internal Security Operations Command Region 4, or other relevant agencies, in taking decisive action against offenders.

Land offices across the country have been instructed to accelerate surveillance, inspection and monitoring of transactions considered at risk of breaching the law.

Officials have also been reminded to exercise care and strictness when registering rights and legal acts at every stage, particularly in key economic zones, tourist destinations and areas where large numbers of land purchases are linked to foreign capital groups.

The Department of Lands said it had already put measures in place and had carried out continuous inspections, especially in-depth checks into sources of funding, connections among landholders, the shareholder structures of juristic persons and behaviour that may indicate concealed landholding on behalf of foreigners.

If irregularities are found, officials must quickly verify the facts and proceed immediately under the law, the department said.

Under the first measure, where an individual or a juristic person with Thai shareholders buys land and payment is made in cash of 2 million baht or more, or where the property has an assessed value of 5 million baht or more for the purpose of collecting registration fees for rights and legal acts, officials must conduct further inquiries. Exceptions apply to inheritance transfers to statutory heirs.

Further investigation is also required where there is reasonable suspicion that Thai nationals may be holding land on behalf of foreigners. Officials may examine issues such as the source of funds, income, financial status and occupation.

The second measure concerns juristic persons considered at risk of holding land on behalf of foreigners, including those with abnormal changes in shareholders, capital increases or unusual shifts in shareholding proportions that may be intended to avoid legal restrictions and allow foreigners to hold land indirectly.

In such cases, officials must thoroughly examine shareholder information, including the source of funds, income, financial status and occupation.

The third measure requires all land offices to conduct monthly checks on juristic persons in which foreigners hold shares, serve as directors, or are suspected of holding land on behalf of foreigners. The results must be reported to the Department of Lands every three months.

If clear evidence of wrongdoing is found, the Department of Lands has ordered firm legal action against the company, the foreign nationals involved and relevant shareholders.

Legal measures will also be used to force the sale of land held unlawfully, with proceedings accelerated to prevent such land from remaining under the control of foreign capital groups through concealed arrangements.

The department has also coordinated with the Department of Business Development, seeking cooperation in examining juristic persons with foreign partners that may be at risk of operating as nominee companies.

Particular attention will be given to companies with shareholder structures involving capital increases or repeated changes in shareholding proportions, which may be intended to allow foreigners to hold land indirectly.

The Department of Business Development has been asked to immediately notify the Department of Lands if it finds behaviour that appears suspicious or falls within the scope of nominee activity, so the Department of Lands can quickly verify the facts and take strict legal action where necessary.

The Department of Lands said tackling nominee arrangements must be carried out seriously and continuously, as the issue is not only about legal avoidance but also the protection of national interests, land-resource security and the long-term rights of Thai citizens.

It insisted there would be no negligence or preferential treatment for capital groups attempting to exploit legal loopholes to hold land unlawfully.

The department also asked members of the public to report any suspected landholding on behalf of foreigners, or the use of Thai nationals as concealed proxies, to local land offices or relevant agencies.

Public cooperation is vital to protecting the country’s land resources and safeguarding Thai interests in a sustainable manner, it added.