Investigators from the Department of Suppression of International Crime (DSI) raided five locations on Koh Samui and Koh Phangan this week [1].
The operation targets nominee networks that allow foreign nationals to illegally own property and tourism businesses in Thailand. Because Thai law strictly limits foreign land ownership, these networks use local proxies to bypass legal restrictions and dominate the tourism sector.
The raids took place in Surat Thani province, focusing on areas known for high concentrations of international investment [1]. DSI officials are expanding a larger probe into how these networks operate and who manages the shell companies involved.
During the investigation, officials discovered a significant concentration of business registrations at a single location. One site was found to be the registered address of more than 100 companies [1].
Investigators uncovered suspected nominee networks linked to foreign-owned property and tourism businesses, a reporter for the Bangkok Post said [1]. The DSI is now analyzing documents seized from the five sites to identify the true owners of the entities, and the Thai nationals acting as nominees.
This crackdown follows a broader government effort to regulate the influx of foreign capital in the hospitality industry. Authorities are seeking to determine if these networks are linked to larger international crime syndicates or are simply local arrangements to circumvent land laws [1].
“One site found to be the registered address of more than 100 companies.”
These raids signal a tightening of enforcement regarding Thailand's land ownership laws, which are designed to protect national sovereignty over territory. By targeting 'nominee' structures—where Thai citizens hold assets on behalf of foreigners—the DSI is attempting to disrupt the legal loopholes that have allowed foreign investors to exert significant control over the tourism infrastructure in high-value areas like Koh Samui.
