DSI raids 5 locations on Koh Samui and Koh Phangan as nominee company crackdown expands to 391 firms

The Department of Special Investigation (DSI) and the Justice Minister have escalated their crackdown on illegal foreign business ownership, raiding five locations across Koh Samui and Koh Phangan. The recent raids targeted a massive Chinese-backed investment network suspected of using Thai proxy shareholders to illegally control land and businesses on the islands, according to the Bangkok Post and Thai Examiner.

This island-focused sweep is part of a broader, nationwide directive issued on July 6 by Interior Minister Anutin Charnvirakul to root out nominee structures.

The scrutiny is moving fast and expanding beyond the Gulf islands. In Phuket, authorities recently discovered two unlicensed hotels and have placed up to 391 companies under active investigation for suspected nominee violations, as reported by Nation Thailand and The Thaiger. Earlier in the week, the DSI also arrested a foreign suspect connected to a luxury villa nominee case in Phuket, according to The Phuket News.

What this means for foreign property owners

If you currently hold Thai property or operate a business through a Thai limited company, the regulatory environment is tightening significantly. The days of using a law firm to supply "silent" Thai shareholders are over.

Here is what you need to review immediately:

• Shareholder legitimacy: Thai shareholders must be genuine partners who can prove the source of their investment funds, not paid proxies.
• Business operations: Your company must be actively trading, filing annual audits, and paying taxes—not just acting as a shell to hold a residential villa.
• Licensing: If you rent out your property short-term, ensure you hold the correct hotel or hospitality licenses, as unlicensed operations are frequently triggering these nominee probes.

While these specific raids targeted large-scale networks, the sheer volume of companies now under investigation—nearly 400 in Phuket alone—shows that local authorities are casting a wide net. If your corporate setup relies on proxy shareholders, it is time to consult a qualified legal professional to ensure your assets are structured compliantly.