Thailand Targets Illegal Businesses: Billions in Losses Claimed
Thailand is intensifying its efforts to combat nominee businesses, grey market operations, and the influx of substandard products, according to a recent announcement by Deputy Commerce Minister Napintorn Srisunpang. A newly formed special task force, comprising representatives from over 20 government agencies, will spearhead this crackdown. This inter-agency collaboration represents a significant escalation in the government’s commitment to addressing these illicit activities, which undermine fair competition and pose risks to consumers.
The task force comprises a powerful coalition of regulatory and law enforcement bodies, including the Immigration Bureau, the Customs Department, the Food and Drug Administration, the Royal Thai Police, and the Thai Industrial Standards Institute. This broad representation aims to tackle the multifaceted nature of nominee businesses, which often involve complex financial transactions, immigration violations, and the importation of goods that fail to meet safety and quality standards. The task force’s mandate includes investigating instances where Thai nationals hold shares in companies on behalf of foreign nationals, effectively masking foreign ownership and potentially circumventing regulations. This practice, coupled with the import of substandard goods, poses a significant threat to legitimate businesses and consumer safety.
To strengthen enforcement, the Ministry of Commerce is partnering with the Ministry of Interior to establish a nationwide network of provincial task forces. These local units, led by deputy governors and provincial commerce officials, will extend the crackdown’s reach across the country. The structure emphasizes accountability, requiring monthly reports to a central subcommittee, which are subsequently presented to the Cabinet. This rigorous reporting mechanism ensures transparency and maintains momentum in combating these illicit practices.
The scale of the problem is substantial. Between September and December 2024 alone, authorities acted on 783 cases involving nominee businesses, resulting in estimated damages of 11.7 billion baht (approximately US$334 million). The crackdown continued into 2025, with an additional 37 cases prosecuted in January, leading to losses of 710 million baht (approximately US$20 million). These figures illustrate the significant financial impact of these illicit operations.
The majority of these cases were concentrated in the tourism sector, particularly in Bangkok, Phuket, and Prachuap Khiri Khan. However, the problem extends beyond tourism, affecting diverse sectors such as online marketplaces, construction materials, accounting firms, logistics, and real estate. Offenders' nationalities primarily originate from Europe and Asia. This widespread nature highlights the need for a comprehensive and coordinated enforcement approach.
To bolster investigative capabilities, the Department of Business Development (DBD) is developing the IBAS system, a sophisticated data analysis tool designed to identify high-risk nominee companies. This technological advancement will enhance the efficiency and effectiveness of investigations. Additionally, a new online feature on the DBD website allows individuals to verify whether their address has been fraudulently used as the registered location for shell companies. This proactive measure protects individuals from unwitting involvement in these illegal schemes.
The crackdown also extends to the financial sector, with the DBD collaborating with the Central Investigation Bureau (CIB) to address mule bank accounts, often used to facilitate illicit financial flows. The CIB is compiling a list of high-risk individuals linked to money laundering and transnational crime, using data from sources such as the Anti-Online Scam Operation Center’s hotline, which recently identified over 200,000 individuals—both Thai and foreign nationals—potentially linked to shell companies or grey market operations. These individuals are now under scrutiny by relevant authorities. This multi-pronged approach—combining enhanced investigative tools, public awareness initiatives, and inter-agency collaboration—demonstrates a determined effort by the Thai government to dismantle these illicit networks and protect its economy’s integrity.
