Proposed Changes to curb the use of nominees
- brian ramsden
- 4 days ago
- 3 min read
Updated: 3 hours ago
Watch for these proposed changes to combat the use of nominees
New proposed amendments to the Anti-Money Laundering Act B.E. 2542 (1999) are being planned as Thailand increases its efforts to combat economic crimes and corruption. One of the primary objectives of the amendments is to curb the use of nominees to help foreign nationals operate restricted or prohibited businesses in violation of the law.
If these proposed updates are implemented, they will substantially strengthen existing legislation related to the use of nominees and bribery.
These offenses would be treated as predicate violations under the amended legislation.
The draft amendments are currently open for a public comment period, which is set to conclude on April 25, 2025.
Predicate Offenses
The draft amendments propose adding the concept of a “predicate offense” covering the following:
Bribery: Giving, offering, or promising to give assets or benefits to Thai or foreign public officials, or officials of international organizations.
Acting as a nominee: Assisting, supporting, or engaging in the business operations of a foreign national who is not permitted to operate that business; jointly operating a business with a foreign national under the guise that it is solely owned by the Thai national; or holding shares on behalf of a foreign national in a partnership, limited company, or any other legal entity to help the foreign national conduct business without the permits required under the Foreign Business Act.
Under the draft amendments, Thai individuals or juristic persons who have agreed to take any of these actions, as well as foreign nationals who allow such assistance in their business operations, will be liable for committing a predicate offense under the Anti-Money Laundering Act.
The draft proposes a prescription period of 15 years from the date the predicate offense was committed.
Beneficial Owners and Arrangements
The draft amendments clarify the definition of “beneficial owner” to include individuals who directly or indirectly own, control, or dominate a business of an entity or any “arrangements” as defined in the draft amendments. Here, “arrangements” means the designation of individuals or juristic persons by other individuals or juristic persons to possess, use, distribute, or manage assets on their behalf. This definition also extends to trusts and other entities established to manage the assets of other parties in Thailand.
To ensure transparency regarding the beneficial owners of legal entities and trusts, the draft amendments require financial institutions and persons engaging in professions identified under the Anti-Money Laundering Act to report information about the beneficial owner of the juristic person, entity, or other person to the Anti-Money Laundering Office. It also requires the beneficial owners themselves to provide this information, with certain exceptions permitted with respect to the reporting requirements.
Outlook
The latest proposed changes aim to strengthen measures addressing the use of nominees to circumvent foreign business restrictions and provide safeguards against unauthorized foreign direct investment activities. By reinforcing the transparency and accountability requirements for beneficial ownership, the draft also aims to ensure that businesses operate in compliance with local laws, including in relation to foreign ownership and control.
The amendments are only in draft form, they will be subject to further revisions during the legislative process.
Lawyers for Expats Thailand are Thailand's dedicated Law Firm for foreigners in Thailand
For many years we have advocated against the use of Nominees and Proxy companies
The property market in popular foreigner areas has disregarded the law and the use of nominees has been rife.
This now leaves many foreigners worried about what the future holds for them in relation to their property investment that is not following the law.
Follow the law be safe be legal
To arrange a free consultation contact us today on +66956583038 or email us at info@lawyersforexpatsthailand.com
An excellent post by professional Lawyers you can rely on to avoid any future legal issues. Simply 'Follow the Law'. Brian and Pook have helped so many of our clients being involved by so many other 'firms' suggesting the wrong advice. Thai law is constantly changing! Please protect yourself legally.