Bangkok: The Commerce Ministry has announced a significant reduction in high-risk nominee arrangements, revealing a 65% decrease in such groups. The Department of Business Development's intensified crackdown over the past eight months has led to this reduction, uncovering 140 accountants holding shares in 2,040 companies.
According to Thai News Agency, the Department of Business Development has been actively addressing nominee ownership by implementing new measures and conducting thorough investigations. These efforts have uncovered 29 accounting firms and 140 accountants involved in over 2,040 companies with foreign investment, amounting to 2,528 million baht. With new measures slated for launch on August 1st, the department plans to conduct in-depth financial transaction investigations and develop a system to link bank data, aiming to close loopholes allowing Thai nationals to hold shares on behalf of foreigners.
Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, highlighted the progress made in preventing the use of Thai nationals as nominees. He noted that Thailand has around 1 million active legal entities, with nearly 120,000 having foreign investors partnering with Thais. The department targets 95,306 companies for monitoring, aligning with government policies to prevent nominee practices. Over the past eight months, efforts have resulted in a 51.05% reduction in high-risk registrations. Additional measures, effective August 1, 2026, will focus on verifying the authenticity of investment funds, balancing legitimate foreign investments while closing legal loopholes.
The department's collaboration with various agencies, including the Royal Thai Police and the Department of Special Investigation, has led to in-depth inspections of 3,294 high-risk companies across 11 provinces from October 2025 to June 2026. These inspections have scrutinized registration data, shareholder information, and financial statements, forwarding findings to relevant agencies for further action, including tax investigations and property ownership checks.
The government has identified six high-risk business groups for inspection: tourism, real estate, e-commerce, transportation, hotels, and agriculture. Investigations revealed foreigners using Thai nominees through methods like setting up companies with varying ratios of Thai to foreign ownership, often involving Thai accountants and firm employees.
The department's recent expansion of investigations into eight tourist provinces exposed 29 accounting firms and 140 accountants holding substantial shares in foreign-invested companies. Findings indicate unprofessional conduct, with the top 10 accountants holding shares in 827 companies. All information has been forwarded to relevant authorities for further action.
Preparations are underway for a meeting involving the Lawyers Council and the Accounting Profession Council on June 30th to discuss regulating the accounting profession. While most of Thailand's 80,000 accountants perform duties correctly, a small number fall into a "grey area" requiring regulation. Cases involving nominees will follow judicial processes, with businesses continuing operations during considerations.