Deputy Commerce Minister Napintorn Srisanpang has announced a comprehensive initiative to dismantle businesses operating under Thai nominee structures, with the objective of eradicating such entities within six months.

This effort involves collaboration between the Ministry of Commerce and the Ministry of Interior to scrutinize approximately 46,000 companies across six business sectors suspected of foreign ownership through local nominees.

Provincial governors have been directed to lead task forces to inspect these firms, which are registered nationwide, to ascertain compliance with the Foreign Business Act.

The ongoing nationwide inspection is expected to conclude within three months in smaller provinces, while areas with a higher concentration of such companies may require up to six months to complete investigations.

The Commerce Ministry's provincial offices are mandated to report progress every three months.

In response to the limitations of existing laws, the Ministry of Commerce is collaborating with the Anti-Money Laundering Office (Amlo) to classify nominee-related activities as financial crimes.

This reclassification would empower authorities to seize assets of companies found in violation.

A new bill, currently being drafted by the Council of State, has undergone public consultation and is anticipated to be submitted to the cabinet within two months.

Between September of the previous year and January, legal action was taken against 820 nominee businesses, resulting in damages exceeding 12.4 billion baht.

The majority of these cases were concentrated in the tourism and real estate sectors.

Recent investigations have expanded to include companies with foreign stakes ranging from 0.01% to 49.99%, increasing the number of targeted companies from 26,830 to 46,918, with sectors such as e-commerce and hospitality under scrutiny.

The government's strategy encompasses short-, medium-, and long-term measures.

Immediate actions involve utilizing existing laws to monitor and prosecute suspect businesses.

Medium-term plans include developing analytical systems to detect nominee usage patterns, while long-term strategies focus on amending legislation to deter such practices.

The Department of Business Development has been tasked with implementing these measures, including the establishment of a complaint center to facilitate reporting and evidence gathering.

Investigations have revealed that accounting firms and professionals are often complicit in facilitating nominee structures, prompting the Ministry of Commerce to draft regulations disqualifying individuals involved in such activities from serving as accountants.

Public consultation on this draft regulation was conducted from April 23 to May 7.

The crackdown has led to significant enforcement actions, including the detention of over 1,000 individuals in recent weeks.

These operations targeted 442 companies across 46 locations, handling over 3.6 billion baht.

Detainees included Thai nationals and foreign individuals from various countries, implicated in businesses registered under Thai nominees to circumvent foreign ownership restrictions.