Huai Khwang proxy ownership crackdown expands, 53 firms referred to AMLO

The Department of Business Development (DBD) has escalated its crackdown on foreign-owned businesses operating illegally through Thai proxies, forwarding the financial profiles of 53 corporate entities, in Bangkok's Huai Khwang district, to the Anti-Money Laundering Office (AMLO) for financial tracing.

Poonpong Naiyanapakorn, director general of the DBD, part of the Ministry of Commerce, revealed today that the department is systematically monitoring high-risk areas to eliminate the use of Thai nominee shareholders. The practice circumvents the Foreign Business Act, B.E. 2542 (1999), which reserves specific sectors, such as retail, wholesale, hospitality and real estate, for Thai nationals.

The move follows a joint field inspection on June 19, for which the DBD’s anti-nominee task force teamed up with the House Committee on Commerce and Intellectual Property, the House Committee on State Security and local law enforcement. The operation targeted illicit foreign investments and undocumented migrant labour networks thriving in the commercially vibrant Huai Khwang district.

"We have uncovered sophisticated corporate structures, in which Thai nationals hold shares on behalf of foreign investors to obscure the true ownership," Poonpong said. "This practice undermines fair competition, disrupts the economic landscape and raises serious national security concerns."

Beyond ownership violations, parliamentary committees also flagged related systemic issues during the inspection, including undocumented foreign workers operating businesses directly under the guise of Thai ownership.

In Huai Khwang alone, the DBD has obtained a watch list of 112 restaurants set up with foreign capital from the local district office. These establishments are currently undergoing forensic audits.

To ensure a city-wide sweep, the department has requested similar data from Bangkok’s remaining 49 district offices and is awaiting responses before launching subsequent field inspections.

The director general emphasised that eradicating the proxy system requires inter-agency integration rather than isolated efforts. By combining the statutory powers of the DBD, AMLO and local district authorities, officials aim to protect legitimate Thai entrepreneurs and restore international investor confidence in the country's regulatory fairness.