PATTAYA, Thailand – Thailand’s Department of Business Development and Department of Special Investigation have announced an intensified nationwide crackdown on suspected foreign nominee businesses, beginning with the tourist islands of Ko Pha-ngan and Ko Samui before expanding operations to Phuket, Krabi, Phang Nga, Pattaya, and Hua Hin.
Authorities say the operation comes after mounting complaints from local residents and business operators over groups of foreigners allegedly using Thai nominees to illegally control businesses and exploit tourism-related resources.
Officials revealed that more than 11,426 companies linked to foreign participation on Koh Phangan and Koh Samui are now being screened and categorized into high, medium, and low-risk nominee groups for further investigation.
The Department of Business Development stated that Pattaya remains one of the country’s biggest areas of concern, with nearly 19,910 companies involving foreign shareholders — representing almost 60% of all registered businesses in the city. Chinese, British, Russian, Indian, and German investors make up the largest foreign business groups in Pattaya.
Authorities said investigations will target a wide range of potential violations beyond nominee ownership, including tourism licensing, labor law breaches, tax irregularities, and suspicious property holdings.
The DSI confirmed it is working closely with anti-money laundering authorities to strengthen enforcement powers, especially after proposed legal changes that would classify nominee-related offenses as predicate crimes under anti-money laundering laws. Officials believe this would allow investigators to trace financial flows more effectively and seize assets connected to illegal operations.
Thai authorities also said tighter company registration measures introduced earlier this year have already reduced suspected nominee registrations significantly, but warned that enforcement operations will now become far more aggressive across major tourism destinations.
