Commerce Ministry Teams With Security Agency to Combat Nominee Firms

The Commerce Ministry has joined forces with Thailand's Internal Security Operations Command (ISOC) to tackle cross-border nominee business practices and shell companies that are destabilizing the economy. Poonpong Nayanaprakan, director-general of the Trade Business Development Department, announced the partnership with Major General Natthasisth Kongchinsasthithi, head of ISOC's Coordination Centre 2, to coordinate efforts in preventing and prosecuting nominee businesses under the Foreign Business Act of 1999.

The two agencies will work together to block and remedy shell company and nominee business schemes by implementing stricter legal registration procedures, including screening for suspicious accounts, requiring Thai shareholders in joint ventures to provide three months of bank statements, and introducing digital identity verification. These measures aim to prevent the establishment of nominee-linked risk enterprises and eliminate fraudulent corporate structures. Currently, there are 1,003,706 registered businesses in Thailand, of which 119,116 are Thai-classified entities with foreign investors holding stakes between 0.01 and 49.99 percent.

Major General Natthasisth stated that ISOC's Coordination Centre 2 prioritizes security matters related to foreign nationals, including migrant labor, human trafficking, and identity fraud, which directly impact social stability and security. The partnership will integrate the Commerce Ministry's strict corporate registration mechanisms with ISOC's security operations to monitor, share intelligence, and intercept foreign nationals illegally posing as Thai business owners or evading regulations. This comprehensive coordination aims to strengthen social security, protect Thai entrepreneurs, and ensure long-term economic stability.