Transcript of the above video:

As the title of this video suggests, we are discussing raids and investigation of nominee companies here in the Kingdom of Thailand. I thought of making this video after reading a recent article from the Phuket News, that's thephuketnews.com, the article is titled: DSI raids Phuket accountants over Bt440 million in nominee companies. "The Department of Special Investigations, DSI," (and let me just start by saying, this is Department of Special Investigation; this is high level stuff, this is like on par with like the American version of the FBI, okay. For those, I have been accused of scaremongering out there. It is what it is here, okay) quoting again: "The Department of Special Investigation has raided a legal accounting firm based in Chalong that is now under investigation for its involvement in facilitating nearly 70 foreigners illegally operating companies with holdings worth an estimated total of Bt440 million." Quoting further: "Major Suriya, (and to be specific this is DSI Director-General Police Major Suriya Singhakamol, so DSI Director-General. For those who would say "well this is a Phuket thing, DSI is nationwide, okay." Quoting further: "Major Suriya told the Press that "almost 70 foreigners" were found to be involved in the companies under investigation for using nominee shareholders to illegally allow foreigners to control such companies." Quoting further: "He said the practice of using nominee shareholders was illegal under the Foreign Business Act and brought "much economic harm" to the country." 

So again, now getting in to what a nominee is, is really highly complex. But I'm going to do other videos contemporaneously with this one where we will do a deep dive into exactly what's going on with this particular situation because you have got issues associated with land ownership; you've got issues associated with restricted occupations. Many foreigners will opt to partner with a Thai in Thailand to set up a company that will allow them to operate but you still have to be very aware of restricted occupations; you still have to be very aware that land holding is restricted from foreigners in Thailand, they're not allowed to own land and if an activity or a practice is viewed as being intentionally designed to circumvent those restrictions, problems will ensue as evidenced by what's happened in this raid in this situation. The other thing to bear in mind is with regard to so-called nominees is yes again you have got the Foreign Business Act, you want to operate in Thailand, you need to deal with work authorization. Again if you have got an active participant in the company who's not a nominee, who's not just a sort of a dead name as I call it, just somebody on that company then you are probably all right. But again what appeared to be the issue here and again I will get into deep dive in subsequent videos, but what appeared to be the case in this situation is that yeah this was being used again for land holding. As I have discussed in prior videos, you have got to be very careful with land holding companies. It may be possible depending on the facts in a given case, oftentimes it may be involving marriage to a Thai National where you are running that business together, land holding through that Corporation maybe appropriate. But in cases where it is just "Oh no, I'm just setting up a company to own my land", that could be considered an absolute subterfuge. If that is the case, they will simply again they can and I think likely will under these circumstances, go ahead and dissolve the company and go ahead and just confiscate the land. 

So you need to be very aware of this stuff. This is also one of those things that a lot of foreigners just shrug off and they're either apathetic or complacent regarding Thai Law and law enforcement where they sort of just say "Oh, you know, but everybody does it, that's kind of the conventional wisdom but everybody does it!" Well guess what? They do it until they don't. I have done videos on this before. When these raids happen, they are substantial, they have ramifications because as noted, this involves 70 foreigners. I'm sure those people are going through a great deal of turmoil at the moment because their future is up in the air, what they invested, all of that and it's because, well I shouldn't directly say why because I don't know the full scope of the facts, but a big factor here with regard to foreigners is their attitude that, "Oh, Mai Pen Rai, I don't have to worry about that, everything's going to be all right, the Thais don't enforce these things". Well in point of fact they do. Being cognizant of Thai Law is very, very important here in Thailand and again I have been accused of scaremongering, whatever, I don't care, that's not my point, this stuff happens. I have been doing this for almost 7 years now and I have warned of many different things coming and I was called a scaremonger then too. At the end of the day I am making these videos to provide what I hope to be clear information to folks and to provide clarification and insight so that people can make good decisions that don't get them in a situation where they really have no way out.