Thailand AMLA To Seize Assets Of Unlawful Foreign Firms

Regulation Name: Anti Money Laundering Act (AMLA)
Date Of Release: 27 May 2025
Region: Thailand
Agency: Government of Thailand

The Thai government is set to amend the Anti-Money Laundering Act (AMLA) to criminalize the use of Thai nominees by foreign businesses and empower authorities to seize their assets.

Stricter Penalties for Nominee Shareholders

Deputy Commerce Minister Napintorn Srisunpang announced on Tuesday that the proposed amendment will classify the use of Thai nominees as a criminal offence, allowing law enforcement to confiscate assets of foreign firms found violating the law.

Currently, foreign businesses restricted under the Alien Business Act often circumvent ownership limits by appointing Thai nationals as nominees. While existing laws require unlawful firms to sell their businesses, Napintorn noted that many buyers simply act as proxies for the original foreign owners, rendering enforcement ineffective.

The new amendment aims to close this loophole by imposing harsher penalties, including asset forfeiture, making it riskier for foreign entities to exploit Thai nominees.

Expedited Legislative Process

The amendment bill is expected to be submitted to the Cabinet within two months. Once approved, Napintorn plans to fast-track its passage through Parliament, proposing that the House of Representatives pass it in three consecutive readings, with the entire House acting as the vetting committee after the first reading.

Following House approval, the bill will move to the Senate for another round of three readings. The Deputy Minister expressed confidence that the legislation could come into force within one year, significantly reducing nominee-driven foreign ownership violations.

Nationwide Probe into 46,000 Suspected Firms

The push for legal reform follows a Commerce Ministry investigation identifying 46,000 Thai companies suspected of serving as nominees for foreign investors.

To expedite the crackdown, the ministry has sought assistance from the Interior Ministry, which has formed provincial-level committees chaired by governors to investigate these firms. The process may take at least three months in smaller provinces and longer in areas with a high number of suspected cases.

Impact on Foreign Investment and Business Transparency

The amendment is expected to enhance corporate transparency and ensure stricter compliance with Thailand’s foreign business laws. While some investors may face disruptions, the government believes the move will create a fairer business environment and prevent illicit financial activities.

With the new law, authorities aim to deter nominee arrangements and hold both foreign investors and Thai proxies accountable, marking a significant step in Thailand’s efforts to combat money laundering and illegal business ownership.

Read the full plan here.

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