DBD, DSI team up against foreign nominee firms in key Thai tourist areas
The DBD has referred 34 high-risk companies to the DSI after screening 11,426 firms, with checks to start in Koh Samui and Koh Pha-ngan.
- Thailand's Department of Business Development (DBD) and Department of Special Investigation (DSI) have partnered to conduct rigorous inspections of suspected foreign nominee companies.
- The initial crackdown focuses on the tourist islands of Koh Pha-ngan and Koh Samui, targeting real estate and tourism-related businesses, with 34 high-risk firms already under investigation.
- The joint operation will expand to other key tourist destinations, including Phuket, Krabi, Phang Nga, Pattaya, and Hua Hin.
- Authorities will also collaborate with the Thai Bankers' Association to scrutinize the source of shareholder funds before company registration to curb the practice.
Poonpong Naiyanapakorn, director-general of the Department of Business Development (DBD), said on Monday (May 11, 2026), after a meeting with Pol Maj Yutthana Praedam, director-general of the Department of Special Investigation (DSI), to discuss the nominee situation in Thailand, that the agencies had jointly set out a rigorous approach to inspecting nominee companies.
The initial focus will be on Koh Pha-ngan and Koh Samui in Surat Thani province.
Data from 11,426 companies that had been scanned in detail will be categorised according to the likelihood of their being nominee companies at high, medium and low levels, and a timeframe for inspections will be set.
34 names sent to DSI for inspection, raising concern
At present, a list of 34 high-risk companies has been sent to the DSI for inspection.
Most are real estate businesses and tourism-related service businesses.
Data analysis found that the proportion of foreign joint investment in key tourist areas was a cause for concern.
The DBD and DSI, together with relevant agencies, will carry out enforcement operations against nominee activity in Koh Pha-ngan and Koh Samui, as well as in key tourist destinations such as Phuket, Krabi, Phang Nga, Pattaya and Hua Hin.
All agencies will inspect companies in risk groups that could be nominees and take serious action to punish offenders, as nominees are a major national problem affecting the country’s economic system and business security in several dimensions.
DBD to discuss checks on sources of funds with the Thai Bankers’ Association
The DBD is also preparing to work with the Thai Bankers’ Association, with talks scheduled for next week.
The source of funds of shareholders will be checked before company registration applications are accepted.
The process is expected to begin with high-risk groups first to avoid affecting the overall business environment.
However, the inspection criteria must be discussed again with the Thai Bankers’ Association.
“For enforcement, the DSI will take cases involving assets of at least THB100 million, or cases with a broad impact, as special cases. It will focus on facilitators, such as law offices or accounting offices, that help set up large numbers of nominees at once.”
Separately, there has been a push to make offences under the Foreign Business Act 1999, involving foreigners allowing Thais to act on their behalf, predicate offences under the draft Anti-Money Laundering Act, for which the Anti-Money Laundering Office (AMLO) is the lead agency.
The matter is currently in the legislative process and has been sent to the House of Representatives to confirm the draft Act for consideration.
If the House approves the draft Act, officials will have the power to inspect the flow of funds at every stage and invoke Sections 36 and 37 to seize assets, which is considered a decisive measure that would help solve the problem sustainably.
Surat Thani draws foreign joint investment in more than 10,000 firms
According to the latest business-registration data for Surat Thani province, there are 21,717 limited companies, of which 11,649 have foreign joint investment.
These include 96 companies in which foreigners hold 50% or more, and 11,553 companies in which foreigners hold 0.01–49.99%.
Among the 10 nationalities with the highest joint investment in Surat Thani, French investors ranked first with 2,365 entries, or 20%, followed by British investors with 1,446, or 12%, Russian investors with 1,205 and Israeli investors with 1,147.
Koh Samui district has 12,050 registered companies and as many as 8,213 companies with foreign joint investment.
Foreigners hold more than 50% in 53 companies and no more than 49.99% in 8,160 companies.
The main investors in Koh Samui are French, the largest group at 1,937 entries, or 24%, followed by British investors with 1,077, Russian investors with 885, Chinese investors with 478 and Israeli investors with 419.
Koh Pha-ngan district has 4,761 companies and 3,213 companies with foreign joint investment.
Foreigners hold more than 50% in 25 companies and less than 50% in 3,188 companies.
The main investors in Koh Pha-ngan are Israeli, ranking first on the island with 720 entries, or 22%, followed by French investors with 426, British investors with 359 and Russian investors with 306.
