Huai Khwang targeted in nominee firm crackdown

The Department of Business Development (DoBD) has intensified its crackdown on nominee shareholding schemes and illicit financial activities, uncovering alleged links between several businesses in Huai Khwang district and online gambling networks.

The operation, conducted jointly with the House Committee on Anti-Money Laundering and Narcotics Suppression and other government agencies, targeted five businesses, including restaurants, shrimp-fishing ponds and a spa.

Authorities found suspected wrongdoing involving three entities, while two others showed no signs of irregularities.

DoBD director-general Poonpong Naiyanapakorn said the inspection was carried out on Tuesday by the department's anti-nominee task force in cooperation with officials from the Huai Khwang district office, the Food and Drug Administration (FDA), and the Economic Crime Suppression Division.

The Huai Khwang district houses a large concentration of Chinese-run businesses, mostly restaurants and eateries.

The investigation focused on businesses considered at risk of using Thai nationals as nominee shareholders on behalf of foreign investors, as well as potential violations involving money laundering and suspicious payment systems.

Among the businesses inspected was a company which operates a shrimp-fishing pond.

Investigators found suspected promotional material linked to online gambling websites. Police subsequently seized accounting documents and equipment believed to be connected to gambling activities for further legal action.

Authorities also examined a Chinese soup restaurant which was found to be associated with two companies.

Investigators discovered the same foreign national served as director and shareholder in both firms.

Officials also found restaurant payments were being transferred directly into the personal bank account of a foreign director rather than a corporate account.

The business was also involved in promoting online gambling websites. Investigators also found that two other registered companies shared the same business address.

A third case involved a wellness and spa operator whose shareholders and directors are all Thai nationals.

During the inspection, authorities discovered another company operating on the third floor of the same building. The company sells amulets and talismans and is jointly owned by Thai and Chinese shareholders. However, the premises were closed during the inspection.

Authorities said evidence gathered will undergo further analysis. If financial transactions or personal accounts are found to have been used to conceal the origin of assets linked to criminal activities, offenders could face prosecution under the anti-money laundering laws.

Foreign nationals operating businesses through nominees, as well as individuals who assist or allow their names to be used as proxy shareholders, face penalties of up to three years' imprisonment, fines ranging from 100,000 baht to 1 million baht, or both.