Thailand’s government has launched a nationwide operation named “Stop Nominee,” ordering officials to identify illegally held land worth an estimated 14.01 billion baht (about US$417 million) by the end of December.
What Happened
Prime Minister Anutin Charnvirakul chaired the launch of the “Stop Nominee” operation at Government House in Bangkok on Monday, directing the Department of Lands (DOL) to coordinate with the Board of Investment around three action areas: prioritizing and expanding investigations of high-risk cases, enforcing laws while closing loopholes that let land be shifted to a new nominee to dodge enforcement, and tightening screening of land transactions before and after registration, according to the Government Public Relations Department.
Somchai Leelanoi, director-general of the Department of Lands, said an initial investigation had identified 13,088 parties under suspicion: 1,550 companies allegedly involving illegal foreign shareholding, and 11,538 suspected of holding land on behalf of foreigners, Bangkok Post reported. The investigation could lead to forced sales of land covering 5,467 rai (about 8.75 square kilometres, roughly 2,161 acres), with officials estimating the combined value at 14.01 billion baht — the figure Bloomberg converted to US$417 million.
Anutin ordered provincial governors and land officials to complete identification of suspected cases by the end of December, after which the findings would lead to legal action. New background checks will apply to individuals purchasing land valued above 2 million baht or property with an assessed value above 5 million baht, and Thai nationals married to foreigners will have to show that the funds used to buy land belong to the Thai spouse. Companies buying property will face scrutiny of their shareholders and sources of funds.
Who It Affects
Foreigners are prohibited from directly owning land in Thailand; some have used Thai nominees — local citizens or companies holding legal title on a foreign buyer’s behalf — to work around the restriction, Bloomberg reported. The operation targets land held through such nominee arrangements specifically. It does not change the separate rules that already let foreigners own condominium units outright, within the standing 49%-of-building foreign quota. Anyone whose land, or whose company’s landholding, was structured through a Thai nominee — rather than a condominium purchase made directly in a foreigner’s own name under the existing quota — falls within the scope of this review.
Background So Far
This is the latest step in a crackdown that has been building for months. Earlier in October, authorities raided 17 locations across four luxury housing estates in Bangkok, arresting 11 suspects, including Chinese nationals, and seizing assets worth more than 6 billion baht, Bangkok Post reported. Separately, Thai authorities have spent recent months tightening enforcement against nominee arrangements in company ownership: the Department of Business Development, Department of Special Investigation and Anti-Money Laundering Office had already widened a crackdown on nominee businesses, naming 6,551 companies in August; the government reported in September that new high-risk company registrations had fallen by nearly 75% year-on-year; and the nominee-company sweep (the so-called “Pa-arn model” crackdown) had expanded to seven provinces by early October, with more than 110 arrests and scrutiny extended to the Thai accountants who help structure these arrangements. Monday’s “Stop Nominee” launch is the first time the government has attached a specific land-value target and a formal deadline — the end of December — to the campaign.
Outlook
PM Anutin said provincial governors and land officials have until the end of December to complete their investigations, after which “appropriate legal action” would follow, Bangkok Post reported. Possible legal consequences he named include forcing the sale of land, deportation, revocation of Thai citizenship, and action under money-laundering and tax-evasion law. He added that “the government confirms that Thailand is ready to welcome foreign investors who act honestly and transparently, comply with Thai law and respect the rights of Thais.” The Government Public Relations Department said screening systems for land transactions will be upgraded at both the pre- and post-registration stages, backed by public guidance for citizens and business operators.
References
Government Public Relations Department – Thai PM Launches Land Nominee Crackdown to Inspect High-Risk Properties / Bangkok Post – PM Orders Nationwide Review of Illegal Foreign Land Ownership by End of December / Bloomberg – Thailand Targets $417 Million of Land in Foreign Buyer Crackdown / The Business Times – Thailand Targets US$417 Million of Land in Foreign Buyer Crackdown
