Report Thai Govt Cracks Down on Nominee Practices in Tourism Sector

[webfact]

Deputy Government Spokesman Anukul Pruksanusak. Picture courtesy of NBT

 

The Thai government has issued a stern warning against acting as nominees for foreign investors in tourism and related sectors, threatening severe legal penalties for violators.

 

Penalties include imprisonment, hefty fines ranging from 100,000 to 1,000,000 baht, asset seizure, and business licence revocation. The warning comes amid concerns of nationals being used as fronts by foreigners, violating the Foreign Business Act of 1999, which restricts foreign ownership in certain sectors.

 

Deputy Government Spokesman Anukul Pruksanusak highlighted that nominee arrangements are common in tourism-heavy provinces like Phuket, Chon Buri, Bangkok, and Chiang Mai. The businesses involved include restaurants, hotels, resorts, real estate, and logistic services.

 

“These operations bypass legal restrictions using Thai nationals as nominal shareholders, creating unfair competition and risking Thailand's reputation as a hub for money laundering,” Mr Anukul stated.

 

In a recent ruling, the Criminal Court convicted 23 parties in Phuket for nominee activities, imposing fines of 200,000 baht each, a two-year suspended jail term, and a one-year probation. The court also ordered company dissolutions for those involved.

 

Authorities emphasised that assets linked to nominee arrangements risk confiscation, and businesses may lose their licences, rendering them unable to operate in the country. The government remains vigilant in enforcing these laws, determined to safeguard Thailand's business integrity.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-08

 

 

[hotchilli]

9 hours ago, webfact said:

The Thai government has issued a stern warning against acting as nominees for foreign investors in tourism and related sectors, threatening severe legal penalties for violators.

All foreign investment in Thai tourism should cease... 

then hear the cries of Thai wailing as businesses fall flat

[thesetat]

Sounds like he is blowing hot air. This practice using Thais nominees will not stop. Just look around, most businesses in the tourist areas are foreigner owned and operated using nominees. Most condo sales are using Thai nominees to buy Thai only properties to avoid their limits on the numbers of foreigners owning the property. I am most certain this extends to many other sectors throughout Thailand. 

[Older and Wiser]

12 hours ago, webfact said:

Deputy Government Spokesman Anukul Pruksanusak. Picture courtesy of NBT

 

The Thai government has issued a stern warning against acting as nominees for foreign investors in tourism and related sectors, threatening severe legal penalties for violators.

 

Penalties include imprisonment, hefty fines ranging from 100,000 to 1,000,000 baht, asset seizure, and business licence revocation. The warning comes amid concerns of nationals being used as fronts by foreigners, violating the Foreign Business Act of 1999, which restricts foreign ownership in certain sectors.

 

Deputy Government Spokesman Anukul Pruksanusak highlighted that nominee arrangements are common in tourism-heavy provinces like Phuket, Chon Buri, Bangkok, and Chiang Mai. The businesses involved include restaurants, hotels, resorts, real estate, and logistic services.

 

“These operations bypass legal restrictions using Thai nationals as nominal shareholders, creating unfair competition and risking Thailand's reputation as a hub for money laundering,” Mr Anukul stated.

 

In a recent ruling, the Criminal Court convicted 23 parties in Phuket for nominee activities, imposing fines of 200,000 baht each, a two-year suspended jail term, and a one-year probation. The court also ordered company dissolutions for those involved.

 

Authorities emphasised that assets linked to nominee arrangements risk confiscation, and businesses may lose their licences, rendering them unable to operate in the country. The government remains vigilant in enforcing these laws, determined to safeguard Thailand's business integrity.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-08

 

 

How does that make for unfair competition or money laundering? These businesses wouldn't exist without foreign investment. Their existence means employment for Thais and tax collection for the government. Where's the downside. Don't attack the nominees system, make foreign ownership  legal. Foreigners won't take over the country. The big Thai businessmen would never allow it.

[LazySlipper]

And how exactly do they find offenders, if not by word of mouth?

 

Do thdy actually inspect any of these operations?

[BumGun]

3 hours ago, Older and Wiser said:

How does that make for unfair competition or money laundering?

The implication is money laundering is why the business exists i.e they're laundering money via their ostensible "legit" Thai business and that's unfair competition