Bangkok (VNA) – Thailand’s Prime Minister has ordered stronger action against foreign-funded companies using nominee arrangements to circumvent local laws amid concerns over negative impacts on local businesses and workers.
A spokesperson for the Thai Prime Minister’s Office said on May 12 that Prime Minister Anutin Charnvirakul had instructed relevant agencies to accelerate measures against the use of Thai nominees on behalf of foreign individuals and organisations involved in illegal business activities.
The move came after investigations found that some individuals, including lawyers and accountants, had advised or facilitated such arrangements.
The Thai leader also assigned the Justice Ministry and the Commerce Ministry to work with the Lawyers Council of Thailand and the Federation of Accounting Professions on disciplinary measures against those involved.
In addition, the Anti-Money Laundering Office (AMLO) was instructed to investigate related financial transactions to strengthen the prevention and suppression of illegal nominee investment schemes.
According to the announcement, Anutin is scheduled to visit Ko Pha-ngan and Phuket to supervise inspections and direct efforts to tackle nominee investment structures in key tourist destinations.
He stressed that the government will continue strict nationwide investigations and not allow illegal investment groups to compete unfairly for jobs or negatively affect Thai citizens and businesses.
Under Thailand’s Foreign Business Act (FBA), foreign investors are generally restricted to holding less than 50% ownership in businesses operating in restricted sectors unless granted special permission.
However, foreign investors have increasingly used Thai nominees to bypass these restrictions by placing shares under Thai names while retaining actual control through secret agreements, preferential shares or proxy arrangements. The practice has reportedly become widespread in sectors such as real estate, tourism, restaurants, agriculture and logistics.
The Thai Government has elevated the issue to a national urgent task and launched broad investigation campaigns nationwide./.
