Thailand Cracks Down on Foreign Proxy Businesses to Ensure Market Transparency

Brickinfo News Agency – The Thai government has intensified its crackdown on illegal nominee businesses, reporting a significant 60% decrease in high-risk entities during the first quarter of 2026. This initiative follows a direct mandate from Prime Minister Anutin Charnvirakul to eliminate “grey capital” and protect the domestic economy from foreign groups using Thai nationals to front restricted businesses. Government spokesperson Ratchada Thanadirek confirmed that authorities are now utilizing advanced data analytics and inter-agency integration to identify and prosecute violators without exception.

Since January 1, 2026, the government has escalated its preventive measures by tightening legal loopholes and cross-referencing databases to screen for suspicious legal entities. These efforts are aimed at preventing the misuse of corporate status for money laundering or unauthorized operations. Recent data from the Department of Business Development (DBD) indicates that the strategy is yielding results, with a marked decline in the number of firms flagged for potential proxy ownership compared to the same period last year.

Despite the progress, the DBD recently identified 6,551 foreign entities suspected of operating in Thailand without the necessary permits. These companies are accused of violating the Foreign Business Act B.E. 2542 (1999) by engaging in restricted activities—such as land ownership or specific service sectors reserved for Thai citizens—while having foreign shareholding of 50% or more hidden behind local proxies.

The legal consequences for these violations are severe, carrying a maximum prison sentence of three years and fines ranging from 100,000 to 1,000,000 THB. Furthermore, the government warned that any Thai nationals found knowingly assisting or acting as nominees for foreign capital will face prosecution as co-offenders. This strict enforcement is intended to safeguard national security and maintain a fair competitive environment for legitimate local businesses.

Spokesperson Ratchada Thanadirek emphasized the Prime Minister’s firm stance on the matter, stating that there will be no compromises in any legal proceedings. “Prime Minister Anutin is moving forward with operations to crack down on all types of illegal businesses, including scammers, nominees, and grey capital. He has clearly declared that there will be no settlements or negotiations—every case will be dealt with strictly to protect the country’s economic interests,” Ratchada noted. The public is encouraged to report any suspicious business activities to the authorities via the 1570 hotline.