Thailand’s authorities have significantly escalated their campaign against illegal foreign business ownership, moving the crackdown from coastal resort towns to the north. On July 20, a task force of more than 250 officers raided 18 locations in Chiang Mai, The Pattaya News reported.
The operation targeted 31 companies suspected of operating as foreign-owned proxies. The raids resulted in the arrest of five foreign nationals, while police seized assets valued at 633 million baht during the sweep.
The raids, ordered by Police General Samran Nuanma, Deputy Commissioner-General of the Royal Thai Police, uncovered a brazen network. The Thai Examiner noted that a single Thai national—currently serving a prison sentence until 2037—was listed as a director and shareholder in eight different Chiang Mai companies.
This northern operation follows a massive bust earlier in the week in Chonburi, where police dismantled a Russian nominee property empire involving 775 homes worth an estimated 5 billion baht.
What this means for you
If you are an expat living in Thailand, this nationwide sweep signals strict enforcement of the Foreign Business Act. The era of using loosely structured Thai companies to hold property or operate restricted businesses is facing unprecedented scrutiny.
The Department of Business Development (DBD) has announced it is tightening its nominee crackdown, ordering financial-trail checks in 16 high-risk provinces, according to Nation Thailand.
Foreigners utilizing corporate structures should expect increased scrutiny on the following fronts:
- Financial trails: Authorities are actively tracing the source of investment funds to verify legitimate Thai ownership.
- High-risk provinces: The DBD is specifically targeting 16 provinces known for foreign investment risks.
- Historical setups: Even long-standing companies are being investigated, as seen in the Chonburi and Chiang Mai raids.
Expats relying on nominee structures to own land or villas should consult with qualified legal counsel to assess their exposure. While legitimate joint ventures with genuine Thai partners remain legal, structures designed solely to bypass foreign ownership restrictions are actively targeted for criminal prosecution and asset seizure.
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