Phuket to crack down on illegal foreign businesses using Thai nominees
Phuket is intensifying its fight against illegal businesses owned by foreigners using Thai proxies.
The local government is forming a task force to address the issue after local entrepreneurs complained of foreign-owned enterprises run under the guise of Thai nominees.
Governor Sophon Suwannarat announced that the Department of Special Investigation will assist in probing the financial activities of these Thai proxies and identifying the true foreign owners.
Despite these businesses being formally registered with Thai nationals owning at least 51% of the shares, enforcement is challenging as these Thai nominees often claim full ownership during inspections.
Over 200 entities in Phuket, such as massage parlors, eateries, tour operators, tattoo parlors, cannabis dispensaries, and car rentals, have foreign ownership stakes up to 49%. The foreign owners hail from a variety of countries, including Russia, Germany, Sweden, China, and South Korea.
Governor Sophon had to curtail his European visit on orders from Interior Minister Anutin Charnvirakul to address this illegal business issue, particularly after a violent incident involving a Swiss national and a Thai doctor.
Police Major General Sinlert Sukhum shared that after the new center's establishment, authorities will scrutinize foreign business partnerships to uncover any facade of Thai ownership.
DSI's inquiry reveals the operation of two business groups with criminal ties: a Russian syndicate in real estate and a consortium of Chinese and South Korean investors managing comprehensive tourism services.
Police Colonel Parinya Klinkesorn cautions that Thai citizens serving as stand-ins for such businesses risk imprisonment, hefty fines, or both. The foreign perpetrators may be deported and barred from re-entry.
Governor Sophon Suwannarat announced that the Department of Special Investigation will assist in probing the financial activities of these Thai proxies and identifying the true foreign owners.
Despite these businesses being formally registered with Thai nationals owning at least 51% of the shares, enforcement is challenging as these Thai nominees often claim full ownership during inspections.
Over 200 entities in Phuket, such as massage parlors, eateries, tour operators, tattoo parlors, cannabis dispensaries, and car rentals, have foreign ownership stakes up to 49%. The foreign owners hail from a variety of countries, including Russia, Germany, Sweden, China, and South Korea.
Governor Sophon had to curtail his European visit on orders from Interior Minister Anutin Charnvirakul to address this illegal business issue, particularly after a violent incident involving a Swiss national and a Thai doctor.
Police Major General Sinlert Sukhum shared that after the new center's establishment, authorities will scrutinize foreign business partnerships to uncover any facade of Thai ownership.
DSI's inquiry reveals the operation of two business groups with criminal ties: a Russian syndicate in real estate and a consortium of Chinese and South Korean investors managing comprehensive tourism services.
Police Colonel Parinya Klinkesorn cautions that Thai citizens serving as stand-ins for such businesses risk imprisonment, hefty fines, or both. The foreign perpetrators may be deported and barred from re-entry.
