Thai DBD Uncovers Nearly 1 Billion Baht in Nominee Business Assets in Phuket and Krabi

The Department of Business Development (DBD) in Thailand has significantly intensified its efforts to combat nominee businesses, particularly in the popular tourist destinations of Phuket and Krabi. These recent inspections have led to the discovery of nearly 1 billion baht in suspected illegal assets, according to DBD Director-General Phunpong Naiyanapakorn. This crackdown, initiated on June 20, is a crucial component of the government's broader campaign to dismantle nominee arrangements in key tourism and investment zones. In Phuket, investigators identified 10 companies suspected of operating under nominee structures, which are linked to illicit land ownership. These entities were connected to four land plots valued at an estimated 116 million baht. Furthermore, authorities flagged an additional 39 companies for further scrutiny, which are associated with 52 land plots worth approximately 115 million baht. The total value of assets currently under investigation in Phuket surpasses 231 million baht. A prominent target of the investigation was a business in Patong, registered in 2019, offering hotel, resort, condominium, and motorcycle rental services. This company had previously operated a tourism business but lost its license due to regulatory breaches concerning board composition. The DBD noted that Thai directors and shareholders linked to this business also held shares in three other companies and directorships in five additional firms. One Thai shareholder admitted to acting as a nominee for an Israeli investor. Related businesses, including a restaurant and a cannabis shop, were also found operating at the same location. Similarly, in Krabi, nine companies were identified for suspected nominee activities. These businesses were tied to 17 land plots with an estimated value of 209 million baht. Investigators also uncovered eight more companies requiring further examination, which were linked to eight land plots valued at around 290 million baht.