53 Huai Khwang businesses probed

Firms in ‘Bangkok’s next Chinatown’ identified as possibly breaching Foreign Business Act

Thai authorities are stepping up a crackdown on 53 firms suspected of using nominee arrangements in Huai Khwang district of Bangkok, amid concerns over Chinese-operated businesses and irregular financial transactions.

Huai Khwang, home to a large concentration of foreign residents and businesses, has come under increased scrutiny as authorities try curb activities that may circumvent the law, particularly through nominee shareholding arrangements, said Poonpong Naiyanapakorn, director-general of the Department of Business Development (DBD).

He said the department, which oversees business registrations, had identified 53 firms operating in sectors restricted under the Foreign Business Act as part of the crackdown. The companies have registered capital ranging from 1 million to 4.9 billion baht.

Information on the firms has been submitted to the Anti-Money Laundering Office (Amlo) for examination of financial transactions and fund flows, as well as to the Revenue Department and police. Some shareholders and accountants linked to the firms were also found to be listed by Amlo under its HR-03 risk category.

Restaurant controversy

Mr Poonpong also addressed media reports that some restaurants had refused to accept payment in Thai baht.

He said the department was filing charges and imposing fines on a restaurant involved after its management and shareholders failed to comply with an order from accounting inspectors to provide explanations.

The restaurant was registered as a company in 2024 and declared restaurant operations as its business activity. Corporate records show one Thai shareholder holding 51% of the shares, with two Chinese shareholders owning the remaining 49%.

The issue came to light after a Chinese man who resides in Bangkok posted a TikTok video alleging that a restaurant in the area refused Thai payment methods and requested payment in yuan instead.

Meanwhile, Huai Khwang district authorities have intensified inspections of businesses following the reports.

Sombat Kruakeeratitham, director of the Huai Khwang district office, said officials subsequently checked on the payment systems of 79 businesses with Chinese partners to ensure compliance with the law.

Authorities have also ordered businesses to display stickers stating that they accept payments in Thai baht, both in cash and via QR code.

The restaurant at the centre of the controversy now displays a QR code linked to a Thai bank account at the front counter for customer payments.

An employee said the restaurant’s usual electronic payment system, linked to a Thai bank account, failed on the day of the incident, prompting staff to ask Chinese customers whether they had cash.

The request was misunderstood as asking for payment in yuan. However, the bill, totalling 328 baht, was ultimately paid through the QR code, the employee said.

Some business owners acknowledged that tourists occasionally asked to pay in yuan when they did not have Thai currency, but said such requests were always declined.