Phuket launches probe into suspected foreign nominee land holdings
Phuket has begun investigating several landholding companies after officials found shareholding structures that may indicate the use of Thai nominees to evade foreign ownership restrictions.
Phuket authorities have launched an investigation into suspected nominee land ownership arrangements after officials identified several landholding companies whose shareholding structures warranted closer scrutiny.
The investigation was initiated at an urgent meeting of the provincial committee responsible for examining suspected nominee land ownership, held at the Phuket Provincial Land Office on Monday, June 15. The meeting was chaired by Naphat Em-on, an Inspector-General from the Department of Provincial Administration who is currently serving as Acting Phuket Provincial Clerk and acting on behalf of the Phuket Governor.
Representatives from the Phuket Provincial Land Office and its Thalang branch told the meeting they had screened data on companies holding land in Phuket and found several firms that should be investigated further. According to officials, some companies were found to have foreign shareholders holding more than 49% of registered capital, or to have more foreign shareholders than Thai shareholders.
Authorities said such arrangements may indicate attempts to evade restrictions on foreign land ownership through the use of Thai nominees. They stressed, however, that the findings are grounds for investigation only and do not in themselves confirm any legal wrongdoing.
Phuket Province has instructed Mueang Phuket District to work with village heads and local leaders to help verify information, monitor suspected nominee arrangements and support inspections in their areas.
Officials said the intensified inspections are intended to protect the province’s economic interests and national security by preventing unlawful land ownership.
The Phuket action follows a nationwide directive issued by the Department of Lands on June 1 ordering provincial authorities to tighten scrutiny of suspected nominee ownership by both individuals and companies. Under those measures, land transactions involving individuals worth more than B5 million, or cash payments exceeding B2 million, are subject to detailed checks into the buyer’s income, occupation and source of funds where there are grounds for suspicion.
The Department of Lands has also expanded checks on companies with foreign shareholders or directors, especially where land purchases exceed B5 million or involve cash payments of more than B2 million. Officials are to examine whether Thai shareholders are genuine investors or are acting on behalf of foreign interests, and to investigate company funding sources. Companies buying land for more than their registered capital without financing arrangements may face additional scrutiny.
No details have been released on how many companies in Phuket are under investigation, where the land is located, or whether any formal legal action has begun.
