The government issued a warning against acting as nominees for foreign investors in business ventures, particularly in tourism-related sectors, highlighting the risk of severe legal repercussions.
Sanctions include imprisonment, substantial fines, asset confiscation, and the revocation of business licences.
Deputy Government Spokesperson Anukul Pruksanusak stated that many are either unknowingly or willingly being used as fronts or nominees by foreigners to operate businesses unlawfully in Thailand. This contravenes the Foreign Business Act 1999, which restricts foreign ownership in certain sectors unless permitted by law.
The Department of Business Development’s data reveals that nominee arrangements are prevalent in tourism-centric provinces such as Phuket, Chon Buri, Bangkok, and Chiang Mai. The businesses being scrutinised include restaurants, hotels, resorts, real estate, and logistic services.
These operations are designed to circumvent legal restrictions by using Thai nationals as nominal shareholders or operators without genuine investment or involvement,
This situation results in unfair competition, a lack of transparency, and the potential for Thailand to become a hub for money laundering, which could tarnish the country’s business reputation.
Anukul said that a recent Criminal Court ruling in Phuket convicted 23 individuals and entities for engaging in nominee practices. Each offender was fined 200,000 baht, received a two-year suspended prison sentence, and was placed under one-year probation. The court also ordered the dissolution of the implicated companies.
He detailed the penalties for those assisting, supporting, or holding shares on behalf of foreigners. These include imprisonment of up to three years for involvement in nominee activities and fines ranging from 100,000 to 1,000,000 baht, with an additional daily fine of 10,000 to 50,000 baht for continued non-compliance with court orders, reported Bangkok Post.
Assets or shares held through nominee arrangements risk confiscation if linked to illegal business practices. Companies found utilising nominees may have their business licences revoked, rendering them ineligible to operate in Thailand.
The story Government warns Thais: Nominee roles risk jail time as seen on Thaiger News.
