Thai authorities are intensifying their crackdown on foreign involvement in nominee company structures within the tourism sector. This initiative, led by the Department of Business Development and the Department of Tourism, uses artificial intelligence and technology to identify high-risk operators. Already, 33 businesses in key tourism provinces have been identified; four operator licences were revoked. Investigations are expanding against both Thai nationals and foreigners suspected of breaches.
Increased Scrutiny
The focus is on preventing and deterring foreign nationals from operating tourism-related businesses using Thai nominees. Agencies are reviewing procedures to address situations where foreigners conduct business illegally through such arrangements. This includes a closer look at company registration practices. Authorities will scrutinise cases where Thai nationals appear as directors of an unusually high number of companies, a practice viewed as a loophole for foreign-controlled operations.
New Checks for Business Owners
New measures may require applicants for tour business licences to provide details on their education, occupation, economic status, and personal income tax payments over the past three years. The Department of Tourism may also introduce interviews before granting licences. These checks will extend to companies changing directors or shareholders. British expats involved in, or considering, tourism-related businesses in Thailand should be aware of these heightened verification processes.
Data Sharing and Enforcement
To bolster enforcement, authorities are developing a real-time database linking tour business licences with the Department of Business Development's company registration data. This system will include alerts for changes in company structures. A separate database will track linked shops and businesses, monitoring wider tourism networks for foreign capital groups potentially seeking to monopolise benefits, evade tax, or launder money. Several government agencies, including the Revenue Department and the Anti-Money Laundering Office, are collaborating to share information and conduct joint inspections. This integrated approach aims to make detection and prosecution of illegal nominee arrangements more effective.
