Transcript of the above video:

As the title of this video suggests, we are discussing, well we are discussing the fact that this nominee probe - I've discussed this in many other videos over the past roughly two to three months now - the Authorities here in Thailand are cracking down on nominee corporations; basically companies set up so-called 49/51, where they are engaged in either unauthorized business activity or they are being utilized to own property. I've talked about this, I felt like that this would probably expand more and more as we went through the year and it looks like it is. 

I thought of making this video after reading a recent article from the Bangkok Post, bangkokpost.com, the article is titled: DSI raids five island spots as nominee probe expands. Quoting directly: "Investigators uncovered suspected nominee networks linked to foreign-owned property and tourism businesses after searching five locations on Koh Samui and Koh Phangan in Surat Thani with one site found to be the registered address of more than 100 companies. The Department of Special Investigation (DSI) working with state agencies, raided the locations on Friday as part of a probe into possible violations of the Foreign Business Act involving the use of Thai nationals as nominee shareholders said DSI Director-General Pol Maj Yutthana Praedam. The operation followed information from the Department of Business Development on 34 companies suspected of using Thais to conceal foreign ownership of restricted businesses. At one target, a luxury villa development in Bo Phut on Koh Samui, investigators found documents relating to shareholdings, land ownership, property transactions, construction contracts and financial records. The company was linked to 15 land plots covering 98 rai, with a land value of 1.57 billion baht." Quoting further: "Pol Maj Yutthana said the development was promoted as a project involving Chinese investors while Chinese nationals played roles in management and business decisions. The site was also linked to at least five related companies involved in property development, construction, marketing and sales." As I have discussed in other videos, all of these things related to Land Development are restricted occupations in and of themselves, including construction. So if they are involving foreign nationals, that's problematic just in and of itself. Quoting further: "A second target, a law office on Koh Samui, was found to be connected to more than 150 companies. Investigators seized land documents, shareholding records, sales agreements and service contracts. More than 100 companies linked to the office were found to hold property and other assets worth about 795 million baht, while more than 103 companies used the same address as their registered headquarters." Now that in and of itself to my mind isn't a dispositive, like negative attribute. Yeah, there are a lot of companies with addresses there.

I have never really understood why Thai law enforcement, we deal with this sometimes because we have a number of Corporations legally domiciled at our corporate address here at our firm. In and of itself that is not illegal. It is possible to have multiple corporations domiciled at a given address. Now that said, they may see it as something like well, we've got a bunch of things listed here, so maybe we should look further. But to my mind, that in and of itself is not something that should be concerning to folks. That said, quoting further: "Other searches involved companies linked to Israeli nationals running hotels, accommodation businesses, wellness centres and rental properties." Again, all coming under - with maybe the exception of wellness centre, depending on what that means - again all of that comes under again, hotels, accommodation, rental properties; that gets into the area of restricted occupations. Quoting further: "Ownership structures, sources of investment whether the businesses complied with licensing requirements are being probed. Justice Minister Pol Lt Gen Rutthapon Naowarat said the DSI would its expand its investigations on Koh Samui and Koh Phangan, particularly cases involving suspected foreign nominees."

And as I have said in other videos, I think this is probably going to spread. I think we are probably going to see this expand wider and wider as they improve their ability to ascertain what the real ownership and beneficial ownership structures are behind these sort of smoke screens and things and that will improve with time as they are using AI, these digital tools within Department of Business Development and there's all of this interagency cooperation now after the signing of the Memorandum of Understanding under this new Government to go after these nominees structures. I think we are going to see more of this not less as time goes by. 

For those out there who are worried, who are in a structure that they believe in good faith was legal - again it depends on the underlying facts in a given case whether or not one can find solutions to get into a compliant state with regard to land, not land ownership but with regard to you may have a property - there may be a way of finding a legal avenue to be able to enjoy usage of it, albeit not ownership as a foreign national. Again, it would depend on the underlying facts in a given case, and those who have concerns about this stuff, it would probably be a good idea to contact a legal professional, gain some insight and guidance into how best to proceed.