DSI visited Phuket, Raided Law Firms Suspected of Registering almost 70 “Nominee” Companies for Aliens

DSI visited Phuket, Raided Law Firms Suspected of Registering almost 70 “Nominee” Companies for Aliens

       On Thursday, June 15, 2023 at 10:30 am. the Director-General of the DSI, Police Major Suriya Singhakamol, along with the Director of Bureau of Security Crime, Mr. Thawewat Surasit, his deputy director and his heads of divisions of Bureau of Security Crime, and special case inquiry official team of the special case no. 295/2565, joined force with officials from Phuket province, officials from Department of Business Development and officials from the Central Institute of Forensic Science to raid and search 3 target areas which is a law and accounting firm. The aforesaid firm registered company limited for foreigners to operate business which is offences under nominee law. The firm was hired to register more than 70 companies for foreigners by using the firm’s employee names for holding shares instead of foreigners. The aforesaid action is in scope of breaching the foreign business law, it caused damage that currently cannot be calculated yet. The aforesaid nominee companies may have operated prohibited businesses that are expected to cause uncountable damage to the country’s economic system.

       The search result found the firm managed its employees to hold shares in nature of nominees of foreigners. The information from this search found 44 companies that conduct real-estate business, 8 companies that conduct tourist business and 14 companies that conduct other services business. Those 44 companies that conduct real-estate business had possessed real estates values from 10 to 20 million baht, estimated amount of 440 million baht. In conducting real estate business, the company will change names of registered shareholders without transferring or selling and acknowledgement of the land office which caused the government to lose income from these transaction fees, about 8% of each transaction, estimated losses amount of 35 million baht. In this case, the DSI will continue in-depth inspection to find how many times the lists of shareholders in nature of selling real estate have been changed. Initially, the case caused losses to the government not less than 200 million baht.

       The Director-General of the DSI stated that “this field operation is an integration and cooperation between DSI and many sectors in Phuket province areas (officials from Phuket province, led by Vice Governor Acting Governor of Phuket province, Mr. Amnuay Pinsuwan) which the DSI has policy for its officials to accelerate suppression in every province of Thailand. Due to the fact that the aforesaid case is a case that seriously affects the national security and economic system of Thailand, which caused losses of an opportunity and incapability of Thai entrepreneurs to compete business fairly.

       On the same day at 03.00 pm. the Director-General of the DSI Pol.Maj. Suriya Singhakamol along with the Director of Bureau of Security Crime, Mr. Thawewat Surasit, had discussion with the Vice Governor Acting Governor of Phuket province, Mr. Amnuay Pinsuwan, to consider measures and guideline in aspects of, both prevention and suppression for decreasing economic damage that occurred from transaction of foreign company in nature of nominee.

       From the discussion, the Phuket province will coordinate with business sector such as the Phuket Chamber of Commerce will organize meeting for understanding the nature of conducting legal business for foreigners according to Thai laws, also the DSI was invited to this meeting as well.

Dated June 15, 2023