Crime Mass Investigation Launched Into Suspected Foreign-Dominated Businesses

[webfact]

File photo courtesy of Wikipedia

 

The Thai government has launched an extensive probe into over 46,000 foreign-controlled firms, stirring the nation's business landscape.

 

Led by Commerce Minister Pichai Naripthaphan, authorities are cracking down on what they term 'nominee-owned companies' and dodgy imports, aiming to shield local industries and promote fair play.

 

Thailand's Deputy Commerce Minister Napintorn Srisunpang highlighted that these long-standing issues lingered due to outdated legal frameworks.

 

The investigation reveals an alarming trend where foreign entities are allegedly bypassing the Foreign Business Act by using Thai nominees. Many such firms, especially in the lucrative sectors of tourism, e-commerce, and real estate, are accused of trafficking in products below standard.

 

In over nine months, the Commerce Ministry reported more than 39,000 cases linked to flimsy imports or firms employing Thai proxies, causing losses estimated at around 2 billion Baht.

 

Consequently, authorities have purged approximately 10,000 goods from digital marketplaces. Moreover, a committee spearheaded by Minister Pichai identified 857 nominee-run companies causing the treasury to bleed approximately 15 billion Baht.

 

To curb these practices, a proposal is on the table for stricter penalties under the Foreign Business Act. Suggestions include heavier punishments for violators, potentially leading to the confiscation of assets. The planned amendments are geared towards offering a robust legal deterrent against exploiting legal loopholes.

 

This development underscores the Thai government's commitment to clean up business practices, maintaining a fair economic environment. With the banking on stricter laws and vigilant enforcement, authorities aim to restore confidence in the market's transparency and integrity.

 

  Adapted by ASEAN Now from Thai PBS World 2025-05-22

 

 

[JellyBabies]

Surely the violators are the corrupt lawyers creating these fake companies. 

 

But as usual lets hit the bad foreigner they are to blame

 

If you stop the supply, you stop the use

 

So look to the initiators of the crime, easy to find in the legal services section of the Thai Yellow Pages

[thesetat]

Really.. My friend owns some condos in Pattaya. He used a lawyer and the developer to appoint a Thai nominee to a fake company so he could purchase those condos that needed Thai ownership to buy cheaper. The company has not made a single baht or operated since its conception. Do you think if the Sh--t hits the fan that they will be going after the lawyer or the developer? Heck no! My friend never knew about these rules and was convinced by the developer that everything he did to acquire the condos was legal. His lawyer has been asked several times about these news reports and swears nothing is done illegally. All lies of course and i have warned him about it as well. But he insists to believe the Thais. I am just waiting the day he comes back to Thailand and asks my help to bail him out of jail.. Some people either do not care about the laws or trust what the Thais are telling them. 

[Montnoveau]

8 minutes ago, thesetat said:

Really.. My friend owns some condos in Pattaya. He used a lawyer and the developer to appoint a Thai nominee to a fake company so he could purchase those condos that needed Thai ownership to buy cheaper. The company has not made a single baht or operated since its conception. Do you think if the Sh--t hits the fan that they will be going after the lawyer or the developer? Heck no! My friend never knew about these rules and was convinced by the developer that everything he did to acquire the condos was legal. His lawyer has been asked several times about these news reports and swears nothing is done illegally. All lies of course and i have warned him about it as well. But he insists to believe the Thais. I am just waiting the day he comes back to Thailand and asks my help to bail him out of jail.. Some people either do not care about the laws or trust what the Thais are telling them. 

As the saying goes, never invest anything more in Thailand than you can afford to lose.

[hotchilli]

10 hours ago, webfact said:

The Thai government has launched an extensive probe into over 46,000 foreign-controlled firms, stirring the nation's business landscape.

Chinese ?

[Montnoveau]

32 minutes ago, hotchilli said:

Chinese ?

Chinese, Russian, North Korean, who knows? 

If you open the floodgates for riff raff, this is what you get.

[dinsdale]

China and Russia.

[JimHuaHin]

How many are Chinese controlled?

 

How many were established after the 2014 coup?

[BritScot]

Here we go again. I'm sure they have a repeat diary on loop. 

[Liverpool Lou]

5 hours ago, JellyBabies said:

Surely the violators are the corrupt lawyers creating these fake companies. 

 

But as usual lets hit the bad foreigner they are to blame

 

If you stop the supply, you stop the use

 

So look to the initiators of the crime, easy to find in the legal services section of the Thai Yellow Pages

It has been well-publicised in other reports that the lawyers/incorporation facilitators are also being targeted.

[kimamey]

On 5/22/2025 at 1:49 PM, thesetat said:

Really.. My friend owns some condos in Pattaya. He used a lawyer and the developer to appoint a Thai nominee to a fake company so he could purchase those condos that needed Thai ownership to buy cheaper. The company has not made a single baht or operated since its conception. Do you think if the Sh--t hits the fan that they will be going after the lawyer or the developer? Heck no! My friend never knew about these rules and was convinced by the developer that everything he did to acquire the condos was legal. His lawyer has been asked several times about these news reports and swears nothing is done illegally. All lies of course and i have warned him about it as well. But he insists to believe the Thais. I am just waiting the day he comes back to Thailand and asks my help to bail him out of jail.. Some people either do not care about the laws or trust what the Thais are telling them. 

 

On 5/22/2025 at 1:49 PM, thesetat said:

Really.. My friend owns some condos in Pattaya. He used a lawyer and the developer to appoint a Thai nominee to a fake company so he could purchase those condos that needed Thai ownership to buy cheaper. The company has not made a single baht or operated since its conception. Do you think if the Sh--t hits the fan that they will be going after the lawyer or the developer? Heck no! My friend never knew about these rules and was convinced by the developer that everything he did to acquire the condos was legal. His lawyer has been asked several times about these news reports and swears nothing is done illegally. All lies of course and i have warned him about it as well. But he insists to believe the Thais. I am just waiting the day he comes back to Thailand and asks my help to bail him out of jail.. Some people either do not care about the laws or trust what the Thais are telling them. 

I'd get something in writing in answer to the question of legality from the lawyer if I were him. 

[ExpatOilWorker]

In the news again....

 

https://www.bangkokpost.com/business/general/3035955/minister-calls-for-tougher-law-on-nominee-firms

[Metapod]

this could really shake up property on islands. half the houses in phuket are probably under this grey area

[watchcat]

7 hours ago, Metapod said:

this could really shake up property on islands. half the houses in phuket are probably under this grey area

 

Great!

[whiteman]

this could really shake up property on islands. half the houses in phuket are probably under this grey area

 

They have been saying this for the last 21 years I have lived here, and I am still waiting to have them grab all those housers back and sell off cheap to the so-called HI so ;0

 

[Barnet1900]

42 minutes ago, whiteman said:

this could really shake up property on islands. half the houses in phuket are probably under this grey area

 

They have been saying this for the last 21 years I have lived here, and I am still waiting to have them grab all those housers back and sell off cheap to the so-called HI so ;0

 

Yep, agree entirely. Anybody believing the official tripe they give out is naive. This is to grease palms only. They get bribed off then keep quiet until the next need for greed. 

 

Why anybody would invest money or do business in Thailand needs their head tested.

[FritsSikkink]

On 5/22/2025 at 1:49 PM, thesetat said:

Really.. My friend owns some condos in Pattaya. He used a lawyer and the developer to appoint a Thai nominee to a fake company so he could purchase those condos that needed Thai ownership to buy cheaper. The company has not made a single baht or operated since its conception. Do you think if the Sh--t hits the fan that they will be going after the lawyer or the developer? Heck no! My friend never knew about these rules and was convinced by the developer that everything he did to acquire the condos was legal. His lawyer has been asked several times about these news reports and swears nothing is done illegally. All lies of course and i have warned him about it as well. But he insists to believe the Thais. I am just waiting the day he comes back to Thailand and asks my help to bail him out of jail.. Some people either do not care about the laws or trust what the Thais are telling them. 

He should have informed himself by reading a bit and not ignore advice of his friend. He clearly doesn't care and could pay the price for it.