Thailand DBD Probes 84 Companies, Asks 38 to Clarify Shareholdings

Key summary

The Department of Business Development (DBD), under the Ministry of Commerce, is investigating 84 companies where five foreign nationals who have changed their nationality to Thai hold shares, raising concerns that they may be used as fronts. The DBD has issued summonses to 38 companies in the high-risk group to provide clarification regarding shareholding and business operations.

Preliminary investigation results categorize the entities into three groups: 42 Thai entities where Thai nationals hold shares and hold all board positions (4 of which are listed as dissolved/inactive), 36 entities where Thai nationals co-own shares with foreign nationals, and 2 foreign entities.

The DBD has requested clarification from 38 companies in the high-risk group, divided into 36 companies suspected of being used as fronts and 2 companies suspected of operating without proper licenses. Currently, 7 entities have provided clarification and submitted documents. 20 entities have requested an extension of one month, and 11 entities have not yet submitted documents, which the DBD will continue to follow up on.

Operation "Yuttharat" is an integrated effort involving 10 agencies to investigate foreign nationals who have changed their nationality from Israeli to Thai, which may impact national security and the economy, as well as tax evasion and real estate ownership.