Government spokeswoman Rachada Dhnadirek said authorities are stepping up a nationwide campaign against illegal nominee arrangements, warning members of the public not to help businesses conceal foreign ownership.
Ms Rachada said on Monday that the move followed Prime Minister Anutin Charnvirakul’s pledge to safeguard Thailand’s economic and security interests.
She urged people to report suspected violations or provide information through the 1570 hotline.
Under the Foreign Business Act of 1999, offenders face up to three years in prison, a fine of 100,000 to 1 million baht, or both.
People who knowingly assist such activities, or fail to prevent them when they are in a position to do so, may also face legal action.
Ms Rachada said enforcement efforts would now place greater emphasis on nominee structures that use Thai citizens to disguise foreign-controlled business operations.
The tougher measures include connecting databases between state agencies, widening proactive investigations and strengthening legal enforcement.
Authorities are also using technology to analyse corporate data and detect companies suspected of operating illegally.
The main goal is to prevent the misuse of company registration for unlawful activities, including money laundering, while supporting a more transparent and competitive business environment over the long term.
Since the intensified campaign began on January 1, the number of companies in the “high-risk nominee” category has dropped by 60% year-on-year.
The Department of Business Development has identified 6,551 foreign-linked companies suspected of operating restricted businesses without permission.
Under the law, restricted businesses include activities fully prohibited to foreigners, businesses requiring cabinet approval because they involve national security, arms supplies or natural resources, and businesses that require approval from the department to protect local competitiveness.
DBD director-general Poonpong Naiyanapakorn said the department is working with the Department of Special Investigation, the Royal Thai Police and tax authorities to widen investigations into related business networks.
