Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, Ministry of Commerce, revealed that the Department of Business Development held a meeting with Lieutenant General Natthasit Kongchinsartthiti, Director of the Coordinating Center for Operations 2, Internal Security Operations Command (ISOC), and his team to coordinate efforts in addressing social and economic security issues, particularly the prevention and suppression of nominee businesses under the Foreign Business Act B.E. 2542 (1999). This is a significant problem severely eroding and damaging the country's economic system. The government and the Ministry of Commerce prioritize this issue, instructing the Department of Business Development to integrate cooperation with all relevant agencies to resolve the problem, correct economic structure distortions, and ensure fairness for Thai entrepreneurs. This will contribute to overall economic stability in the country.

“Initially, both agencies will leverage their strengths to combat and resolve gray capital and nominee businesses. The Department of Business Development will utilize its role as the primary source of business creation, tightening scrutiny of legal entity registration through enforcement of orders from the Central Registry of Businesses and Companies.” The announcement from the Central Registry of Businesses and Companies aims to close legal loopholes, such as screening high-risk nominee accounts, requiring Thai shareholders in foreign joint ventures to provide bank statements for the past three months, and digital identity verification. These measures will reduce the establishment of high-risk nominee companies and eliminate the creation of companies used for nominee accounts. Currently, there are 1,003,706 legal entities operating in Thailand. Of these, 0.01% to 49.99% have foreign investment, meaning that 119,116 of them remain registered as Thai legal entities.”

Lieutenant General Natthasit said, “The Coordinating Center for Operations 2, ISOC, has a primary mission to oversee security. The Coordinating Center for Operations 2, ISOC, closely monitors issues concerning foreigners, focusing on migrant workers, migration, illegal immigration, and the fraudulent use of nationality by foreigners. These issues are interconnected and significantly impact the country's social security. This also includes the drug problem. Information on legal entities that produce or import chemicals used as precursors in drug production would be extremely beneficial.” The operations and missions of both agencies have led to concrete integrated cooperation. The Department of Business Development will utilize its rigorous corporate registration mechanism as the front line in screening and preventing illegal foreign investment, combined with the security operations of the Internal Security Operations Command (ISOC). This collaboration will allow for joint monitoring, information exchange, and the suppression of foreigners who illegally claim Thai citizenship, take jobs, or conduct business in a manner that circumvents the law. This coordinated effort will enhance the resolution of social security issues, protect Thai entrepreneurs, and ensure the sustainable economic stability of the country.

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