Bangkok: In a decisive move against illegal business practices, the Department of Business Development has revamped its strategy to scrutinize 'nominee' operations, zeroing in on six high-risk sectors: tourism, real estate, e-Commerce, transportation and warehousing, hospitality, agriculture, and construction. Within the first three months of 2025, over 100 instances of Thai nationals being used as nominees were uncovered. The department has partnered with the Anti-Money Laundering Office to draft legislation aimed at confiscating assets from individuals involved in illicit business activities.
According to Thai News Agency, Mrs. Aromon Sapphawitham, Director-General of the Department of Business Development, Ministry of Commerce, highlighted a significant incident involving the collapse of the Office of the Auditor General's building, managed by the ITD-CREC joint venture, following the Myanmar earthquake on March 28, 2025. Investigations revealed that China Railway Number 10 Company Limited, part of the joint venture, had three Thai nominees holding shares on its behalf. This discovery prompted the Department of Business Development to extend its inspection framework in 2025 to cover more businesses within the identified high-risk sectors, encompassing a total of 46,918 cases nationwide. The department is collaborating with various agencies to clamp down on illegal foreign business operations.
Mrs. Aromon noted that several businesses have been reported to the department, and there have been media reports of foreign entities unlawfully entering the Thai market using Thai nominees. These include construction and real estate businesses in areas like Rama 9 and Krungthep Kreetha, restaurants in Huai Khwang, Rama 9, and Ratchadaphisek, as well as agricultural land ownership cases in Rayong and Chanthaburi provinces. More than 100 nominee businesses have been identified, including the China Railway Number 10 Company and affiliated entities involving nominee shareholdings by three Thai nationals.
In response, the Department of Business Development, in conjunction with the Anti-Money Laundering Office, is drafting amendments to the Anti-Money Laundering Act. This proposed legislation would impose stricter regulations on Thai nationals who facilitate or engage in business operations with foreigners in contravention of the Foreign Business Act B.E. 2542 (1999). It aims to categorize nominee activities and unauthorized foreign business operations as fundamental offenses, paving the way for asset seizure from both Thai and foreign violators. This measure seeks to dismantle nominee companies and curb the use of Thai nationals as conduits for money laundering.
The draft legislation is currently open for public commentary on the central legal system website (https://law.go.th) until April 25, 2025. Following the consultation period, the Anti-Money Laundering Office intends to propose the draft law to the Cabinet before it is reviewed by the House of Representatives and the Senate for final approval.