Thailand Tightens Laws Against Nominee Ownership, Shell Companies
Thailand is tightening laws against nominee ownership and shell companies, with the Land Department proposing harsher penalties including property confiscation and up to three years imprisonment. The government is also strengthening cross-b
Thailand's Ombudsman Somgsak Saiched announced on July 23, 2569 that the government is preparing stricter laws to combat nominee ownership, money laundering, and online scams. The Ombudsman has visited multiple border areas to strengthen cooperation with neighboring countries including China, Myanmar, Cambodia, and Laos on scammer operations.
For nominee ownership within Thailand, several agencies are implementing legal reforms. The Commerce Ministry issued a directive requiring retroactive review of Thai shareholder proportions for three months, though the Ombudsman suggests this period should extend to one to three years. The Anti-Money Laundering Office is amending laws to classify nominee ownership as a money-laundering offense, while the Land Department has proposed to the Cabinet that penalties be increased from the current ten-thousand-baht fine and property return to property confiscation by the state, imprisonment up to three years, and fines around 3 million baht for both Thai and foreign shareholders.
High-risk areas identified include Huai Khwang district in Bangkok, agricultural regions such as Chanthaburi, Trat, Rayong, Chumphon, Samut Songkhram, Samut Sakhon, Ratchaburi, Phetchabun, Chiang Mai, and Chiang Rai, as well as tourism zones with many hotels and resorts held by nominees. The Ombudsman acknowledged that solving these problems is complex, but as a constitutional body, his office will continue pushing implementing agencies to take sustained and intensive action.
