Officials caution Thai nationals against acting as nominees for foreign-owned businesses, highlighting recent court rulings and strict enforcement under the Foreign Business Act. PATTAYA, Thailand – The Thai government is warning citizens that acting as illegal nominees for foreign-owned businesses carries severe penalties, including imprisonment, substantial fines, and the seizure of assets. Deputy Government Spokesperson Anukool Pruksanusak explained that the government is reinforcing this warning to prevent Thais from being illicitly used by foreign nationals. The Department of Business Development reports ongoing monitoring of businesses at risk of violating the 1999 Foreign Business Act. This surveillance targets Thai nationals holding shares on behalf of foreigners or facilitating their operations. The focus is particularly on tourism and related industries, such as restaurants, hotels, real estate, and logistics. High-risk areas include the major tourist provinces of Phuket, Chonburi, Bangkok, and Chiang Mai. Deputy Government Spokesperson Anukool highlighted a recent Criminal Court ruling in Phuket. The court found 23 individuals and legal entities guilty of nominee activities. They were each fined 200,000 Thai baht and given a two-year suspended prison sentence with one year of probation. The court also ordered the dissolution of their companies. Those who assist, support, or hold shares for foreigners face serious legal consequences. Penalties include imprisonment for up to three years. There are also fines ranging from 100,000 to one million Thai baht. An additional daily fine between 10,000 and 50,000 Thai baht may be imposed until the violation ceases. Furthermore, any assets or shares held by a nominee can be legally seized. Finally, the business license of any company using a nominee can be revoked, preventing it from operating in Thailand. Anukool stated that these disguised foreign businesses create unfair competition and a lack of transparency. He warned they could be used for money laundering, which negatively impacts Thailand’s reputation for investment and business. (NNT)