Phuket Nominee Probe Expands to Six Rawai Companies

The Phuket nominee probe in Rawai has widened: police have searched five locations linked to six companies with a combined case value of more than 100 million baht and issued arrest warrants for three foreign nationals, The Phuket News reported, citing Phuket Provincial Police.

The operation, which police have called the "Rawai Nominee Crackdown", targets suspected arrangements in which Thai citizens are listed as shareholders while foreigners allegedly provide the money and control the business.

How the Rawai case started

The investigation grew out of the arrest of a Chinese woman identified only as Ms Lin, who was detained by Phuket Immigration on Thursday, October 29. She is accused of using Thai nationals as nominees to run businesses on the island.

According to the report, the first phase of the case focused on two companies in which Ms Lin allegedly supplied all of the investment capital and had sole control, while a Thai woman appeared on paper as a shareholder. Investigators also identified:

• a luxury villa valued at more than 50 million baht;
• bank transactions of more than 100 million baht involving accounts linked to Ms Lin;
• a wider network that has now grown to six companies and five searched locations.

Police look past the shareholder list

Phuket Provincial Police Commander Pol Maj Gen Surachai Suksai said the latest searches are part of an intensified effort against suspected nominee schemes. Investigators will not rely only on company shareholder records, he said, but will try to establish who actually financed each business, who runs it day to day and who the ultimate beneficial owners are.

"Phuket welcomes legitimate investment, but it will not tolerate the use of nominee arrangements to circumvent the law," he was quoted as saying, adding that law-abiding entrepreneurs deserve fair competition.

Police said they will work with other agencies on possible violations, and they asked the public to report suspected cases in which Thai nationals act as proxies for foreign investors.

Why the Phuket nominee probe matters

Thai law limits foreign ownership of land and of many types of business, and holding shares on someone else's behalf to get around those limits is illegal. The Rawai case is a reminder for foreign residents and investors that the structure behind a villa, rental business or shop can be checked well beyond the paperwork. Anyone planning to invest should get independent legal advice and use legal routes.

For background, read our guides on whether foreigners can buy property in Phuket, how foreigners can register a business in Thailand and the Phuket luxury villa market.

What happens next

Police have not publicly named the three foreigners subject to warrants or the six companies. The suspects have not been convicted of any offence. Phuket Times will follow the case as more official details are released.

Photo: Phuket Municipality Police Station, by Christophe95 / Wikimedia Commons, CC BY-SA 4.0.