Commerce Ministry Reports 75% Drop in Nominee Company Registrations After Stricter Rules Implemented
Thailand's Commerce Ministry reports a 75% drop in suspicious nominee company registrations after implementing stricter verification rules on April 1, part of a coordinated crackdown involving 21 government agencies to combat money launderi
The Department of Business Development has launched aggressive enforcement operations against nominee companies—a scheme where Thai nationals hold shares on behalf of foreign investors—to prevent misuse of corporations for money laundering and illegal business activities. Department Director Poonpong Nainapakon announced that 21 government agencies have signed a cooperation agreement on April 29, 2025, chaired by Prime Minister Anutin Charnvirakul, to coordinate prevention and prosecution efforts and strengthen law enforcement integration.
The enforcement measures have shown dramatic results. In the first quarter of 2025 (January-March), suspicious nominee company registrations dropped 60% to 1,373 companies, compared to 3,511 in the same period last year. After additional investment verification measures took effect on April 1, registrations plummeted 75% in early-to-mid April, with only 175 companies registered versus 658 in the comparable 2024 period. The department acknowledged that 25% of suspicious cases still slip through and is considering additional preventive measures while minimizing impact on legitimate operators.
From October 2024 to April 23, 2025, authorities referred 11 cases to the Central Investigation Bureau involving over 300 related entities across steel, accounting, real estate, and transportation sectors. Deep investigations were conducted in 27 high-risk areas across 10 provinces including tourism, real estate, logistics, and coconut farming operations. Data was forwarded to multiple agencies: 534 cases to the Revenue Department for money trail investigation, 6,709 to the Excise Department for financial audits, 137 to the Social Security Office, 117 to the Accounting Profession Supervision Committee, 25 to the Special Cases Investigation Department, and 15 to the Trade Competition Commission. Authorities also identified 4,372 unlicensed foreign businesses, including 256 in strictly prohibited accounting services.
