Thai govt issues stern nominee warning
Punishments include imprisonment, heavy fines, asset seizure, and the revocation of business licences.
Deputy Government Spokesman Anukul Pruksanusak said many people have unknowingly or willingly been used as fronts (nominees) by foreigners to illegally operate businesses in Thailand. This violates the Foreign Business Act of 1999, which prohibits foreign ownership in certain sectors unless permitted by law.
According to data from the Department of Business Development, nominee arrangements are most commonly found in tourism-heavy provinces such as Phuket, Chon Buri, Bangkok, and Chiang Mai. Businesses under scrutiny include restaurants, hotels, resorts, real estate, and logistic services.
'These disguised business operations are set up to bypass legal restrictions by using Thai nationals as nominal shareholders or operators, without actual investment or participation.
'This leads to unfair competition, a lack of transparency, and even the potential for Thailand to be used as a hub for money laundering — damaging the country's business reputation.'
Mr Anukul said that in a recent ruling, the Criminal Court convicted 23 individuals and entities in Phuket for engaging in nominee practices. Each was fined 200,000 baht, received a two-year suspended jail sentence, and were placed under one-year probation. The court also ordered the dissolution of the companies involved.
He outlined the penalties for those who assist, support, or hold shares on behalf of foreigners. They 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.
Any assets or shares held through nominee arrangements may be confiscated if found to be linked to illegal business practices. Companies found using nominees may have their business licences revoked, making them ineligible to operate in Thailand.
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