The Ministry of Commerce has taken action against foreign steel trading businesses in Samut Prakan, suspected of using Thai nominees to hold shares illegally.
Deputy Permanent Secretary of Commerce, Chakara Yodmanee, who leads the task force against illegal foreign businesses, reported that the Department of Business Development has intensified efforts to resolve nominee issues, following instructions from Deputy Commerce Minister Suchart Chomklin.
This effort involves collaboration with several agencies, including the Department of Special Investigation, the Anti-Money Laundering Office, and the Royal Thai Police. Currently, legislation is being pushed to allow asset seizures from those found using nominees, covering both Thai and foreign nationals, as well as companies involved.
Chakara highlighted recent complaints from the Thai Roofing Business Association about certain steel traders potentially operating as nominees and engaging in other legal violations.
Consequently, officials from several departments, including the Department of Business Development, Department of Internal Trade, Department of Special Investigation, and the provincial offices in Samut Prakan, inspected a suspected steel trading company on August 19.
The investigation revealed discrepancies in shareholder information and business activities when compared with official records. The company was ordered to provide further clarification, and Thai shareholders were urged to promptly explain their details.
Evidence will be compiled for the Economic Crime Suppression Division to pursue legal action. False information submissions will lead to additional charges under the Criminal Code.
Furthermore, the Department of Internal Trade found two unverified weighing machines at the company, a violation of the Weights and Measures Act, resulting in legal action and confiscation of the equipment.
Chakara further stated that the Ministry of Commerce will urgently compile comprehensive data and refer any nominee-related businesses to law enforcement for prosecution. The Revenue Department will also be involved to scrutinise tax compliance.
The ministry plans to inspect nominee-related businesses nationwide without exception. Additionally, the Department of Business Development has been tasked with utilising the Intelligence Business Analytic System (IBAS) to detect potential nominee operations more effectively, reported KhaoSod.
Holding shares on behalf of foreigners is illegal and poses a risk to the country’s economic stability. The public is encouraged to report suspected nominee businesses through the Department of Business Development’s website, under the section for nominee complaint submissions, to help create a transparent and fair business environment.
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