CHIANG MAI - Authorities have expanded a major suppression campaign against proxy businesses run by foreigners from southern tourist islands to the northern destination of Chiang Mai, where police say they have identified many suspected illicit operations.
A team of 188 police officers and administrative officials launched the anti-nominee business operation on Wednesday, said Pol Maj Gen Yutthana Kaenchan, the Chiang Mai provincial police commander.
He said authorities were following the government’s policy to tackle foreigners who illegally operate businesses through Thai proxies, causing negative impacts on the local economy and business competition.
“Chiang Mai province has been identified as one area where the ‘Koh Phangan Model’ will be expanding,” he said, referring to the active suppression of illegal foreign business activities on the tourist island in Surat Thani province.
Pol Maj Gen Yutthana said that authorities in Chiang Mai had already identified two hotels that violated the Hotel Act, three parties that breached the Immigration Act, a group of companies in which Thai proxies held assets illegally on behalf of foreigners, and 11 companies that did not have brick-and-mortar offices as claimed in their registration.
“The organisations concerned are collecting evidence and expanding investigation to prepare for legal prosecution,” he said. “Local businesses will be in order and the national economy will be protected.”
- Explainer: Nominee structures in the spotlight
