On April 3, 2019, Mr. Wuttikrai Leewirapan, Director-General of the Department of Business Development, revealed that "the department has collaborated with the Tourism Department, the Department of Special Investigation (DSI), and the Tourist Police to conduct field investigations into businesses that may be linked to foreigners using Thai nationals as nominees. In 2019, we integrated data and identified target business groups for in-depth investigation in selected provinces, focusing on five business categories: 1. Tourism and related businesses 2. Real estate trading and property holding 3. Agriculture-related businesses 4. Freight transportation 5. Advertising businesses.

          The results of the investigations based on the aforementioned plan have been ongoing since November 2018 to the present, covering four provinces that are major tourist destinations where foreigners commonly invest: Phuket, Chiang Mai, Surat Thani (Koh Samui), and Krabi. In Phuket, 69 businesses were investigated, and 91 letters were issued requesting investment-related documents. In Chiang Mai, 39 businesses were investigated, with 52 letters issued for document requests. In Surat Thani (Koh Samui), 44 businesses were investigated, and 70 letters were sent for document requests. In Krabi, 30 businesses were investigated, and 36 letters were issued for document requests.


          "Preliminary results from the investigations in Phuket and Chiang Mai found no violations related to nominees. However, there were 24 legal entities that failed to comply with the document requests, leading to legal action for non-compliance under the Accounting Act B.E. 2543, which carries a penalty of up to one month in prison, a fine of up to 2,000 baht, or both. Additionally, a note was made in the certificate stating, 'This entity has not submitted accounts and/or has not clarified the preparation of accounts for the fiscal year 2017. Please exercise caution in legal transactions.' In Surat Thani (Koh Samui) and Krabi, officials are currently conducting in-depth document investigations, and results are expected soon."


          Mr. Wuttikrai stated that the department and partner agencies are currently conducting field investigations in Chonburi province to check for nominees and plan to investigate four more provinces: Trat (Koh Chang), Bangkok, Prachuap Khiri Khan, and Phetchaburi. If violations are found, all cases will be prosecuted to the fullest extent to combat the use of nominees, and there may be repeat investigations in the same areas or additional areas if information on businesses potentially acting as nominees is discovered.


          The issue of nominees is a significant national problem that impacts the economy and the country's image broadly. If this issue cannot be resolved, Thailand will miss economic opportunities and lose substantial revenue. Therefore, the department warns Thai nationals who assist, support, or hold shares on behalf of foreigners to enable them to conduct business while avoiding or violating the law. Foreigners who have Thai nationals hold shares on their behalf, including company directors, will also be held accountable, facing penalties of up to three years in prison or fines ranging from 100,000 to 1,000,000 baht, or both, along with daily fines of 10,000 to 50,000 baht until the violations cease.

 

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