Thailand’s Department of Special Investigation (DSI) is investigating 21 companies on Koh Samui and Koh Phangan in Surat Thani province over suspected nominee shareholding arrangements linked to foreign ownership violations. The firms, each holding assets worth more than 100 million baht, are suspected of using Thai nationals to hold shares on behalf of foreign investors in possible breaches of the Foreign Business Act 1999.
Get today's headlines by email 
DSI director-general Pol Maj Yutthana Praedam said on 15 May that authorities had reviewed 34 companies flagged during a joint meeting with the Department of Business Development. The DSI’s Security Cases Bureau found evidence suggesting 21 of the firms may qualify as nominee companies and has opened formal investigations.
The inquiry is focusing on whether the companies operate businesses restricted under the Foreign Business Act and whether foreign shareholders hold at least 50% ownership through Thai proxies. Authorities are examining resort, hotel and restaurant businesses, many of which fall under restricted sectors listed in the law.
Investigators are also assessing the financial capacity and backgrounds of Thai shareholders allegedly holding shares for foreigners. Officials are reviewing whether Thai shareholders genuinely funded their investments or whether foreign nationals provided the capital on their behalf. The DSI said evidence gathering would take time because multiple factors must be verified in each case.
Yutthana acknowledged that nominee cases often involve the same individuals appearing as shareholders or directors across multiple linked companies. Investigators are examining whether those individuals had the financial means to invest in numerous businesses simultaneously and are also reviewing how the companies were originally registered with the Department of Business Development.
The DSI clarified that a kindergarten on Koh Phangan mentioned in previous reports is not part of the current investigation because it was not included among the 34 companies referred by the Department of Business Development. Cases involving businesses with assets below 100 million baht are being handled by police investigators rather than the DSI.
Officials said the investigations involve investors from several nationalities, including Israeli nationals and are not targeting any specific country or region. Yutthana stressed that authorities would pursue legal action against any foreign national found violating Thai law if sufficient evidence is obtained.
The DSI also noted that violations of the Foreign Business Act are not currently classified as predicate offences under Thailand’s anti-money laundering laws. However, the Anti-Money Laundering Office is reportedly seeking legal amendments that would allow nominee business offences to be investigated as money laundering cases, potentially enabling asset seizures and wider financial investigations.
ThenDaily News reported that the Prime Ministerial directives have instructed agencies to accelerate investigations into companies with assets exceeding 100 million baht. The DSI said inquiries are continuing and further evidence is being gathered.
Picture courtesy of Daily News
Join the discussion? 
Already a member? 
Adapted by ASEAN Now Dailynews 17 May 2026