CHIANG MAI, Thailand – Thai police have launched a major crackdown on alleged foreign nominee businesses in Chiang Mai, raiding 18 locations and targeting 31 companies suspected of illegally using Thai nationals as proxy shareholders to control land and businesses worth an estimated 633 million baht (about US$19 million). The operation, dubbed “Foreign Nominee Network Crackdown – Phase 5,” was carried out on July 20 under orders from senior Royal Thai Police officials. More than 250 officers from Provincial Police Region 5, Chiang Mai police, the Department of Business Development, the Land Department, and provincial authorities took part in the coordinated raids.
Deputy National Police Chief Pol. Gen. Samran Nualma said the operation was an expansion of the government’s campaign against illegal foreign business ownership under the “Koh Phangan Model,” aimed at eliminating nominee structures that allow foreigners to bypass Thailand’s foreign business laws.
Authorities reviewed more than 33,000 registered companies in Chiang Mai and found 4,741 firms with foreign shareholders. Of those, 1,591 were initially flagged for possible nominee arrangements before investigators narrowed the focus to 31 companies. Sixteen were suspected of using Thai nationals as proxy shareholders, while another 15 were allegedly majority foreign-owned and illegally holding land. Investigators said the companies collectively owned 29 land plots covering more than 20 rai, with an estimated value of 633 million baht. Police also obtained 22 arrest warrants and 18 search warrants. The suspects include nine Chinese nationals, seven Myanmar nationals, three Indians, one Briton, and two Thais. Five suspects had been arrested as of Sunday, including two Indian nationals and three Myanmar nationals. One of the key investigations centered on a housing development in Saraphi district, where four companies were allegedly linked to nominee arrangements.
In one case, investigators found that a Thai man identified only as Mr. R. was listed as a shareholder in seven companies and an authorized director in another company despite being imprisoned since November 2021, making it impossible for him to have actively managed the businesses. He told police that while in prison he handed over his national ID card and house registration to an acquaintance who promised an investment opportunity but said he never received any financial benefit and was unaware his identity had been used to establish multiple companies. In another case, a Thai shareholder identified as Mr. S. said he had unknowingly become a shareholder after providing a copy of his ID card to a real estate broker. He told investigators he was paid 7,000 baht each time to sign documents at the Land Office related to property transactions. A third Thai national, identified as Mrs. C., said she had given copies of her ID card and house registration to a foreign employer, believing they were needed for social security registration and salary payments. She later discovered her name had been used as a shareholder without her knowledge.
Police said criminal proceedings have been initiated against the shareholders and company directors involved and that investigators are expanding the probe to identify the organizers, facilitators, and ultimate beneficiaries behind the alleged nominee network. Authorities said the campaign will continue in key tourist provinces including Chiang Mai, Phuket, Krabi, Phang Nga, Chonburi, and Surat Thani to prevent foreigners from using Thai nominees to circumvent the Foreign Business Act B.E. 2542 (1999) while ensuring that legitimate foreign investors can continue operating legally under Thai law.
