Bangkok: Police are intensifying their crackdown on foreign nominees, investigating funding sources and the true shareholders following a raid on Koh Phangan. Pol. Lt. Gen. Trairong Phiwphan, Deputy Inspector General of the Royal Thai Police and spokesperson for the Royal Thai Police, revealed the progress of the "Operation Dismantle Foreign Nominee Network on Koh Phangan," stating that in accordance with the government and Royal Thai Police's policy, foreigners visiting or doing business in Thailand are being monitored to ensure they operate legally under Thai law. This includes a coordinated search of areas with a high concentration of foreign residents and investors, with Koh Phangan considered a key target area.
According to Thai News Agency, Pol. Lt. Gen. Trairong said that investigations revealed a total of 3,754 legal entities on Koh Phangan, and that 2,381 of them had foreign shareholders. Authorities have already arrested two suspects and issued arrest warrants for three more, along with seizing 37 land deeds worth over 150 million baht. They will now expedite the investigation to trace the financial trail and identify the true beneficiaries.
Pol. Lt. Gen. Trairong stated that foreigners can conduct business in Thailand if they operate within the legal framework, such as holding shares that do not exceed the legally stipulated proportions. However, the problem lies in the use of "nominees," or having Thai nationals hold shares on their behalf to conceal the ownership of businesses and assets on behalf of foreigners, which is illegal.
Officials are currently conducting an in-depth investigation into the cross-shareholding patterns of various companies to determine if they constitute a form of concealment. They have found patterns where the same group of Thai individuals hold shares or serve as directors in multiple companies, switching roles frequently, which may qualify them as "mock companies" or nominee companies.
Regarding the possibility of involvement by government officials or law firms, Pol. Lt. Gen. Trairong said that the investigation team is currently examining whether the individuals or agencies involved "knew or should have known" that the registration was intended to conceal foreign control of businesses in Thailand, particularly the law firms or lawyers who handled the company registration. This will be considered based on a detailed examination of the evidence.
As for Thai nationals who hold shares on behalf of foreigners, if it is found that they have assisted or supported the holding of shares on behalf of foreigners, they will be guilty under the law. Currently, legal action has been taken against two individuals, and further investigations are underway.
A spokesperson for the Royal Thai Police confirmed that this operation was in accordance with the government's policy and the National Police Chief's directive to all units to expedite the crackdown on foreign investment groups using Thai nationals as nominees, in order to prevent illegal business domination and asset ownership in Thailand.