Phuket nominee raids lead to 16 arrests, police say

Police arrested 16 people in the latest Phuket investigation into companies suspected of using Thai shareholders to conceal foreign control or financing, authorities said.

The arrests were made under warrants during Operation Dismantle Foreign Nominee Network in Phuket, Phase 4, launched on Aug 6. Those arrested include 10 Thai nationals, two Canadians, three Russians and one Kazakhstani national. Six other people remain under investigation for possible prosecution, police said.

The raids covered car and motorcycle rental businesses, car-wash and detailing services, language and international schools, restaurants, IT application developers, electronics shops and traditional Thai medicine pharmacies. Investigations into related businesses and land ownership are continuing.

Police said the Phase 4 investigation identified eight nominee companies, bringing the total number of cases prosecuted against such companies to 31. Suspected nominee arrangements can involve Thai nationals formally holding at least 51% of a company's shares while foreign investors provide the capital, or arrangements that give foreigners effective voting or management control.

The operation is also part of a wider investigation into companies linked to foreign land ownership in Phuket. Authorities have identified 361 companies for examination in cooperation with the Phuket Provincial Land Office and its Thalang branch. Of these, 114 have been sued, police said. Courts have ordered fines against 39 companies, while 15 rai and 13 square wah of land has been forcibly sold under the relevant legal procedures.

Officials have identified 149 legal entities that own land and have foreign shareholders holding more than 50% of the shares. Proceedings have begun to dispose of the land in accordance with the law.

Phuket has 32,024 registered legal entities with combined registered capital of about B240.6 billion, according to police. Of these, 11,078, or 34.59%, are classified as foreign-owned. Authorities have identified 6,682 high-risk businesses requiring monitoring across tourism; land and real estate; e-commerce; transport and warehousing; hotels and resorts; and agriculture and construction.

Mueang District has the largest number of foreign-owned entities, with 6,073, followed by Thalang with 2,670 and Kathu with 2,335.

New checks for companies with foreign investment include reviewing three months of bank statements to compare investment funds with declared share values, examining shareholders and sources of funds, checking for high-risk or nominee accounts, and verifying business premises. Companies registering at the same address as more than five others must provide documents proving their right to use the premises. Accountants or lawyers must also verify the company's identity through the relevant registration system.

After registration, officials will monitor warning signs including foreigners holding less than 50% of shares while exercising effective control, companies operating businesses prohibited to foreigners, discrepancies over who provided the capital and individuals controlling multiple companies.

Phuket Provincial Police said 62 nominee-related cases are currently recorded. Five have resulted in court judgments, four are before the courts and 53 remain under investigation. Police also reported a 57.64% decline in newly established legal entities with foreign investment after stricter verification measures were introduced, while liquidation of foreign-invested legal entities increased by 20.65%.

Authorities said investigations would continue to examine company ownership structures, investment sources and control arrangements.