Authorities Address Potential Appointees
Thai Authorities Crack Down on Land Acquisition by Foreigners Through Nominees
In a bid to address long-standing concerns over foreigners using Thai nominees to illegally purchase land and violate restrictions on business sectors, the Ministry of Commerce and the Ministry of Interior have signed a Memorandum of Understanding (MoU). The agreement, ratified by the Department of Business Development (DBD) and the Department of Lands on Thursday, aims to close existing loopholes by facilitating data sharing between both agencies [1][2].
The move comes in response to growing apprehensions about foreigners bypassing legal restrictions and operating in sectors reserved for Thais, such as agriculture, real estate, and hospitality. Such arrangements are viewed as distorting the market, hindering fair competition, and threatening national economic and social stability [1].
To combat this issue, the DBD will submit lists of companies under investigation for acting as fronts for foreign interests to the Department of Lands. An ongoing probe has exposed around 46,918 questionable businesses with foreign shareholdings between 0.001% and 49.99%, with over 26,000 congregating in the real estate sector - a particularly sensitive area of concern [1].
Deputy Interior Minister Songsak Thongsri stated that the cooperation between the departments will enable the Department of Lands to scrutinize applicants more meticulously and prevent foreigners from acquiring land through nominees [1]. Pornpoth Penpas, director-general of the Department of Lands, emphasized that nominee issues are often overlooked due to shares transferring following land purchase approvals. The new system, however, will enable authorities to track ownership changes in real-time and take decisive action as necessary [1].
Lastly, the government is evaluating potential legal penalties to further deter foreigners from engaging in such activities.
References:[1] ''Govt working to ensure Thai nominees not exploited'', The Nation, February 23, 2023.[2] ''Thai govt to crack down on foreigners using nominees to buy land'', Bangkok Post, February 24, 2023.
- The agreement between the Ministry of Commerce and the Ministry of Interior, aimed at addressing foreigners using nominees to illegally purchase land, also includes efforts to monitor the business sector, as such activities can distort the market and threaten national economic and social stability.
- As part of the new system to combat foreigners using nominees to acquire land, the government is considering implementing legal penalties to further deter such actions in the realm of policy-and-legislation, particularly in sectors like finance, real estate, and hospitality, where general-news reports have highlighted numerous instances of this practice.
