The Thai government has announced a commitment to take serious legal action against businesses suspected of using Thai nationals as nominees for foreign ownership. This initiative particularly targets sectors related to tourism in key areas such as Phuket, Chonburi, Bangkok, and Chiang Mai.
Key Takeaways
- The government is intensifying investigations into nominee businesses.
- A recent case in Phuket led to the prosecution of a nominee real-estate group.
- The Criminal Court has sentenced 23 offenders with fines and probation.
Background of the Investigation
The Department of Business Development (DBD) has been actively investigating businesses that allegedly exploit Thai nationals to mask foreign ownership. This practice is particularly prevalent in the tourism sector, where foreign investments are significant.
The DBD’s investigations have focused on prime tourist destinations, where the potential for foreign investment is high. The department aims to ensure that businesses comply with Thai laws regarding foreign ownership.
Recent Developments
A significant breakthrough in this initiative occurred with the prosecution of a nominee real-estate group in Phuket. The DBD’s preliminary investigation revealed irregularities in the shareholding structures of several legal entities. These entities were found to be using Thai names as nominees for foreign interests, often facilitated by law firms and accounting services.
The case was escalated to the Department of Special Investigation (DSI) for further inquiry. The DSI gathered sufficient evidence, leading to a prosecution in the Criminal Court.
Court Verdict
On September 11, the Criminal Court delivered its verdict in Case No A.2812/2567, resulting in significant penalties for the offenders involved. The court sentenced 23 individuals to:
- A fine of 200,000 baht each
- A suspended two-year prison term
- One year of probation
- An order to dissolve the implicated companies
This ruling marks a pivotal moment in the government’s efforts to combat illegal nominee businesses and uphold the integrity of the Thai economy.
Implications for Businesses
The government’s crackdown on nominee businesses sends a clear message to both local and foreign investors. Companies operating in Thailand must ensure compliance with local laws regarding foreign ownership. Failure to do so could result in severe legal consequences, including fines and imprisonment.
Conclusion
The Thai government’s vow to take serious legal action against nominee businesses reflects its commitment to maintaining a fair and transparent business environment. As investigations continue, businesses are urged to review their ownership structures to avoid potential legal repercussions. This initiative not only aims to protect local interests but also to foster a more equitable economic landscape in Thailand.
Sources
- Government vows serious legal action against nominee businesses, Nation Thailand.
