HUA HIN, Thailand – Police have uncovered a suspected foreign nominee network using Thai nationals to establish companies and acquire property in Hua Hin before transferring full control to foreign owners, with authorities warning that online company registration has created a loophole for abuse. Deputy National Police Chief Pol. Gen. Samran Nualma said authorities searched 15 locations in Hua Hin during the sixth phase of an ongoing investigation into suspected foreign nominee businesses and illegal pool-villa operations.
Investigators identified more than 3,000 companies in Prachuap Khiri Khan holding land and property, with foreigners holding shares in more than 1,500 companies. Authorities identified 849 companies considered potentially suspicious, with 33 targeted in the latest operation.
Police sought 45 arrest warrants, all involving foreigners, while representatives linked to 39 Thai companies were summoned for questioning. Officials said many Thai nominees claimed they did not know the foreigners involved, but investigators will examine those claims against the evidence.
Across six phases of the operation, authorities have identified property and business interests worth an estimated 2.539 billion baht.
Samran said foreigners found to have illegally acquired property will be required to sell the properties and take the proceeds out of Thailand. If properties cannot be sold, authorities may seek court approval for auction procedures, while investigations will continue into other parties involved.
He stressed that the investigation is not targeting any particular nationality. Authorities will also examine law firms and accounting offices suspected of facilitating nominee arrangements.
Officials said Thai law clearly restricts foreign ownership, but online registration has created an opportunity for manipulation. In some cases, companies are initially registered with Thai shareholders holding 100%, only for foreign shareholders to be added within two months through online changes without submitting additional documentation.
Prachuap Khiri Khan Governor Sittichai Sawatsaen said the province has reviewed 2,980 land-development companies, including 1,811 in Hua Hin. Officials identified 80 companies where foreign shareholders appeared to exceed the permitted 49% ownership threshold. Those cases are being investigated. The Department of Business Development said it has tightened controls since August 1. Previously, thousands of foreign-linked registrations could be processed each month, but only five foreign shareholding registrations were recorded under the stricter measures since the new controls took effect.
Authorities said the Hua Hin operation will continue, with investigators expanding their probe into the networks and professional services allegedly used to facilitate nominee structures.
Caption: Police and officials announce the latest results of Thailand’s investigation into suspected foreign nominee companies and property ownership in Hua Hin, with 15 locations searched and 45 arrest warrants sought. (TNA)
