Cracking Down on Foreign Land Acquisition through Nominees
Agreement Intended to Prevent Nominee Misuse
The Thai government has taken a decisive step to rein in the practice of foreigners illegally acquiring land in the country by registering it under Thai nominees. To tackle this issue, the Ministry of Commerce and the Department of Lands has signed an MoU, while the Anti-Money Laundering Office (AMLO) gets set to draft a bill.
The MoU's Role
The MoU sets its sights on six business sectors where Thai nominees are frequently employed to surpass foreign ownership laws. It's all about tightening the screws, particularly on real estate and land trading entities, which account for nearly 55% of the at-risk legal entities on the Department of Business Development's list. This collaboration between the Departments ensures suspicious activities are flagged and probed for wrongdoing.
AMLO's Impact
The AMLO is heavily involved too, drafting legislation to zap loopholes and crack down on firms providing nominees to foreign nationals. These amendments to the Anti-Money Laundering Act aim to classify the use of Thai nominees by foreigners as a predicate offense. This means authorities can confiscate assets of businesses involved in such illicit activities.
The proposed bill goes further than simply targeting direct offenders. It empowers authorities to seize assets from those propping up these illegal business structures, be they Thai or foreign nationals. Furthermore, the amendments aspire to bring Thailand's anti-money laundering standards in line with global norms, increasing business transparency.
The Bottom Line
The partnership between the Ministry of Commerce, Department of Lands, and the AMLO targets to bring a halt to foreign nationals falsely acquiring land through Thai nominees. By beefing up inspections, escalating penalties, and aligning with international standards, the government seeks to protect Thailand's economic security and safeguard foreign ownership laws.
- The MoU's focus on six business sectors, including real estate and land trading entities, indicates a determination to enhance industry regulations, particulary within the finance and business sectors.
- The proposed bill, drafted by the Anti-Money Laundering Office (AMLO), aims to redefine the use of Thai nominees by foreigners as a finance-related offense, which could lead to stricter penalties and increased business transparency in line with global norms.
