Police launch Phuket crackdown on suspected nominee businesses

Police launched a new crackdown in Phuket on Tuesday targeting businesses suspected of using Thai nationals as nominees for foreign owners, with search teams moving into Patong after a 6am launch ceremony outside Phuket City Police Station.

By 9am, multi-agency teams were searching hotels, car rental companies, tour operators, restaurants and related businesses suspected of breaching Thailand’s nominee laws. The operation forms part of the third phase of a nationwide campaign.

The crackdown was led by Deputy National Police Chief Pol Gen Samran Nualma and National Police Inspector-General Pol Lt Gen Nophasil Phoolsawat, alongside senior officers from Region 8 Police, Phuket Provincial Police, Immigration Division 6 and representatives from the Department of Business Development, Department of Lands and other agencies.

Police said the operation follows directives from Prime Minister Anutin Charnvirakul and Royal Thai Police Chief Pol Gen Kitrat Phanphet to intensify action against the illegal use of Thai nationals to hold assets or operate businesses on behalf of foreigners.

Authorities said investigators are examining company structures and shareholdings allegedly designed to let foreigners own land or run restricted businesses through Thai nominees.

“If any actions are found to constitute nominee arrangements or violate relevant laws, decisive legal action will be taken,” Pol Lt Gen Nophasil said.

According to investigators, Phuket has more than 30,000 registered companies, including more than 11,000 with foreign shareholders. Authorities said analysis had identified more than 600 companies considered at risk of operating as nominee businesses.

Police said earlier phases of the investigation had already led to summonses, arrest warrants and expanded investigations into a number of companies.

The campaign also targets illegal land ownership. Authorities said investigations across Phuket, Krabi and Phang Nga had identified more than 46 rai of land allegedly linked to nominee arrangements, with an estimated combined value of more than B1.05 billion.

In Phuket alone, investigators are examining about 15 rai and 13 square wah of land linked to suspected nominee structures.

Officials said the campaign is not intended to discourage legitimate foreign investment, but to ensure businesses operate legally, maintain fair competition and protect Thailand’s economic interests.

Authorities also warned law firms, accountants and business consultants that those found advising clients on how to circumvent Thai nominee laws could face legal action.

Police said the Royal Thai Police would continue investigations and strict enforcement to maintain confidence in Phuket and the wider Andaman region as investment and tourism destinations.