KOH PHANGAN, Surat Thani — Thai authorities have concluded the second phase of a coordinated operation targeting foreign nominee business structures on Koh Phangan, resulting in the arrest of 22 foreign nationals and the seizure of more than 40 rai of land valued at over 200 million baht, according to senior police officials.

Thai Police Raid 32 Companies In Koh Phangan Crackdown

The intensified enforcement effort, which commenced earlier this month with an initial phase launched on May 13, has focused on identifying and disrupting illegal business arrangements in which foreign nationals utilize Thai citizens as nominal shareholders to circumvent restrictions on foreign ownership under Thai law. Authorities pursued 37 cases and conducted 27 searches during the first phase of operations on the popular tourist island, which has experienced recurring concerns regarding illicit activities involving foreign operators and local nominees.

On Saturday, more than 300 officers led by Police Lieutenant General Noppasin Poolsawat executed raids and arrests under warrants approved by the Koh Samui Provincial Court. The latest operation encompassed 39 cases across 36 locations, with authorities securing 45 arrest warrants targeting individuals of various nationalities suspected of involvement in nominee business structures.

A significant target of the operation was FB Properties Co Ltd, operating under the name Yoga House, where investigators reportedly determined that the actual owner was an unidentified Israeli national allegedly using Thai nominees as shareholders to conceal foreign ownership. According to Police General Samran Nualma, the deputy national police chief overseeing the nationwide crackdown, the company reportedly held eight plots of land covering 7.5 rai with an estimated value exceeding 60 million baht. The business was also allegedly operating hospitality services without proper authorization.

Authorities categorized findings from the second phase into two distinct groups. The first involved 32 companies identified as clear nominee operations, wherein foreign nationals effectively controlled businesses through Thai front persons. In these cases, officials arrested 22 foreigners and seized 45 land plots covering more than 40 rai, with estimated economic damages surpassing 200 million baht. Charges filed included operating foreign businesses without permission and illegal land ownership under applicable Thai statutes.

The second group comprised 32 companies in which foreign shareholders allegedly held ownership stakes exceeding those of Thai shareholders, a arrangement that may violate regulations governing foreign business participation. These firms controlled more than 38 rai of land, much of which remained vacant and undeveloped. Officers conducted searches at 21 of these companies to gather evidence for potential further legal action.

The nominee business issue on Koh Phangan has been under investigation since 2024, with 29 cases previously filed against suspected enterprises. Judicial proceedings have concluded in two cases to date, involving 62 suspects comprising 32 Thai nationals and 30 foreigners.

Thai police in Surat Thani wrapped up the second phase of their crackdown on foreign nominee businesses on Koh Phangan on Saturday, arresting 22 foreigners and seizing more than 40 rai of land worth over 200 million baht.

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According to the Department of Business Development, approximately 3,213 of Koh Phangan’s 4,761 registered companies are foreign-operated. Israeli nationals represent the largest group of foreign investors on the island, followed by French and British citizens.

Following completion of this operational phase, Police General Samran indicated that authorities would convene with representatives from the Department of Business Development, provincial commerce officials, and the Department of Land to accelerate investigations into financial transactions and expand enforcement efforts. Police are also examining whether public officials may have been involved in facilitating illicit activities, with findings to be reported to Prime Minister Anutin Charnvirakul, who has ordered inquiries into local officials in Phuket and Surat Thani regarding alleged involvement in illegal operations within major tourist destinations.

Authorities emphasized that similar crackdowns aimed at restoring regulatory order in tourism areas and preventing exploitation of local residents by foreign operators would be expanded nationwide as part of broader efforts to address unlawful business practices. The public has been encouraged to report relevant information to local police stations or through official law enforcement hotlines.

Under Thai law, the Foreign Business Act restricts certain commercial activities to Thai nationals or requires specific approvals for foreign participation. Violations can result in fines, imprisonment, business closure, and deportation for foreign nationals involved. The legal framework is designed to protect domestic economic interests while permitting legitimate foreign investment through approved channels.

Koh Phangan, renowned for its beaches, full-moon parties, and tourism infrastructure, has experienced rapid development alongside challenges related to regulatory compliance, land ownership disputes, and the integration of international business operators within local economic systems. Authorities have indicated that sustainable tourism development requires adherence to legal standards that balance investment opportunities with protection of community interests.

For foreign investors considering business activities in Thailand, legal experts recommend consulting qualified professionals regarding ownership structures, licensing requirements, and compliance obligations. Engaging with legitimate business partners and maintaining transparent operational practices helps ensure adherence to Thai regulations while supporting positive economic contributions.

Koh Phangan Praises Nominee Crackdown

As investigations continue, authorities have indicated that further updates regarding judicial proceedings, additional enforcement actions, or policy developments related to foreign business regulation are expected.

-Thailand News (TN)