Thailand Investigates 34 Suspected Nominee Companies on Island Resorts
Thailand's Department of Special Investigation is cracking down on 34 suspected nominee companies on Koh Samui and Koh Phangan, where foreign investors are allegedly using Thai nationals as proxy shareholders to illegally own resort busines
BANGKOK — May 12, 2026: Thailand's Department of Special Investigation (DSI) has launched investigations into 34 companies on Koh Samui and Koh Phangan in Surat Thani province, suspected of operating as nominee businesses using Thai nationals as proxy shareholders for foreign investors.
DSI Director-General Pol. Maj. Yutthana Praedam and Director of Bureau of Security Crime Pol. Lt. Col. Chanchai Likitkantason met with Poonpong Naiyanapakorn, Director-General of the Department of Business Development (DBD), to establish a collaborative framework for investigating and suppressing nominee businesses across Thailand's major tourist destinations. The crackdown follows direct orders from the Prime Minister and Minister of Justice to protect national interests and ensure fair business competition.
Data scans revealed widespread risks of nominee structures with increasingly complex ownership arrangements. Authorities cited complaints from local residents alleging that foreign groups had improperly exploited local resources and disrupted communities while disregarding Thai law. The DSI and DBD are now conducting a strategic audit of the suspected nominee firms.
Investigators analyzed over 11,426 registered companies and categorized them by risk level. The initial focus centers on Koh Samui and Koh Phangan, with plans to expand investigations to other tourism hubs including Phuket, Krabi, Phang Nga, Pattaya, and Hua Hin.
The DBD submitted information on 34 companies with combined assets exceeding 100 million baht each to the DSI. Around 20 of these companies have been identified for further scrutiny. Investigators will examine shareholder structures, ownership proportions, and whether Thai shareholders have financial backgrounds consistent with their investments. A key part of the probe involves verifying whether shareholders' reported income matches their multi-million baht investments and whether ownership changes occurred suspiciously during company operations.
