Hua hin: The Deputy National Police Chief has revealed a significant operation targeting foreign nominees in Hua Hin district who use Thai nationals to open companies, allowing them to hold real estate before eventually seizing 100% ownership. He emphasized that the law is not lax; however, the online system presents opportunities for corruption.
According to Thai News Agency, Police General Samran Nuanma, Deputy Commissioner General of the Royal Thai Police, along with Police Lieutenant General Nophasil Phoolsawat and other high-ranking officials, announced the results of their operation to dismantle the illegal pool villa network in Phase 6 in Hua Hin District, Prachuap Khiri Khan Province. The operation, which took place across 15 locations, has not yet concluded and will proceed further.
The investigations have uncovered over 3,000 companies registered as legal entities owning land and real estate in Prachuap Khiri Khan Province, with over 1,500 of these companies found to have foreign shareholders. Of these, 849 companies are suspected of wrongdoing, with 33 already targeted. Authorities have issued 45 arrest warrants, all targeting foreigners, and summoned 39 Thai companies for questioning. Many of the Thai companies confessed to not knowing the foreigners personally, revealing that the foreigners had registered the companies and were renting properties for 50,000 baht per month.
Throughout the six phases of the operation, authorities uncovered assets valued at 2,539 million baht. The authorities plan to allow foreigners to sell their homes and reclaim the money, returning the land to the state. If they fail to sell, the land will be auctioned off. The investigation will be expanded further, focusing on Thai nominees who claimed ignorance, which investigators consider an excuse.
Thus far, only 33 companies operated by Israeli nationals have been identified, with further investigations needed to determine if any of the 849 companies have Israeli shareholders. Authorities stress that they are not targeting any particular nationality but rather all foreign individuals involved in the offenses. The investigation will also extend to involved law and accounting firms. It is confirmed that the law is not lax, but rather that the situation involves exploiting loopholes, particularly through the online registration process.
Mr. Sittichai Sawatsen, Governor of Prachuap Khiri Khan Province, stated that 2,980 land development companies with legal entities holding land have been inspected, with 1,811 located in Hua Hin. Among these, 80 entities were found to have foreign shareholders exceeding the 49% ownership limit and will face legal action. The province has formed a committee to investigate the facts.
The Deputy Director-General of the Department of Business Development emphasized that they are actively addressing the issue, with measures in place since 2012 requiring foreigners holding more than 50% of shares to provide bank account documents. A common practice is evasion through registering companies with 100% Thai ownership before subsequently altering the registration to include foreign shareholders. The department has been intensifying efforts to curb this practice, with stricter measures implemented since August 1st, resulting in a significant decrease in the registration of foreign-owned companies. The department remains vigilant in monitoring nominee-related issues.