Interior Ministry launches task force to hunt foreign business nominees after 10 billion baht stock warrants

On October 28, the Ministry of Interior officially convened a special task force dedicated to rooting out illegal business nominees and fraudulent citizenship applications across Thailand.

This administrative escalation comes just days after Thai authorities issued arrest warrants for foreign businessmen Ben Smith and Yim Leak. According to Workpoint Today (in Thai), the two are implicated in a massive money laundering and nominee shareholding case involving 10 billion baht in Thai stocks.

The high-profile warrants have triggered a mandate from the very top. The Prime Minister has publicly ordered a "no compromise" approach to prosecuting foreign nationals who use illegal nominee structures, according to Matichon (in Thai).

What this means for foreign business owners

If you operate a Thai company or hold property through a corporate structure, the era of lax enforcement is ending. The government is actively dismantling arrangements where Thai citizens hold shares on behalf of foreigners without genuine financial investment or voting power.

Expats and relocators should prepare for immediate scrutiny in several areas:

• Corporate audits: The Ministry of Commerce is expanding its checks, recently targeting 44 additional firms suspected of bypassing foreign ownership laws, according to Nation Thailand.
• Regional raids: This is not limited to Bangkok. Officials in Phuket and Chiang Rai have launched targeted operations, while police on Koh Phangan recently raided 32 suspected nominee firms and seized 150 million baht in assets, according to Thai Visa Services.
• Asset seizure: The Ministry of Industry is pushing to classify environmental crimes as money laundering, which Thai Post (in Thai) reports would allow authorities to seize the assets of both nominees and the real foreign investors behind them.

Fraudulent citizenship in the crosshairs

Alongside corporate nominees, the new task force is targeting identity fraud. Authorities recently arrested 24 individuals in "Phase 3" of an operation dismantling a syndicate that provided fake Thai parentage to foreign nationals, according to Khaosod and PPTV HD36 (in Thai).

Spring News (in Thai) reports that Chinese nationals were using these fraudulent Thai fathers to illegally obtain citizenship and professional licenses, including in engineering and medicine.

For expats, the message is clear: ensure your Thai corporate structures are strictly compliant with the Foreign Business Act. Relying on proxy shareholders to hold land or operate restricted businesses now carries severe legal and financial risks.