PATTAYA, Thailand – The Department of Business Development (DBD) has established an internal division and appointed a committee to prevent and address illegal business activities, aiming to stop companies violating Thai law.
Following the policy of Commerce Minister Suphajee Suthumpan, which emphasizes the prevention and suppression of businesses disguised by foreigners using Thai nominees, DBD Director-General Poonpong Naiyanapakorn explained that while the department has simplified corporate registration to make it more convenient and faster, some dishonest individuals exploit the system to deceive the public.
He noted cases where companies were registered to open bank accounts used to defraud people, a practice known as “horse accounts via corporate entities.” Other companies evade or conduct business in violation of the law, including cases where foreigners register companies using Thai citizens as frontmen or nominees.
“The situation has been increasingly serious. Therefore, the DBD has established the Division for Prevention and Suppression of Illegal Business Activities to handle these issues directly,” said the director-general. He added that the unit will work in coordination with relevant agencies to strictly enforce the law and prevent and address illegal business operations.
Additionally, an official order has appointed the Committee for Prevention and Suppression of Illegal Business Activities, chaired by the DBD director-general himself. The committee held its first meeting on Oct. 1, setting policy frameworks and strategies, and appointing subcommittees focused on different areas: business registration prevention, business data analysis, business account inspection, and legal affairs.
Each subcommittee is tasked with defining methods, measures, and strategies for preventing and addressing businesses that evade or violate the law. If illegal activities are detected, the department will coordinate with relevant agencies to pursue legal action against the offenders to the fullest extent.
The initiative signals DBD’s commitment to tightening oversight of corporate registrations, protecting the public, and closing loopholes that allow fraudulent and unlawful business operations. (TNA)
