Bangkok: Launching a historic operation to dismantle the grey dragon’s nest, authorities in Thailand have initiated a large-scale crackdown on the nominee business of horse companies. This operation has resulted in the uncovering of 442 companies involved, the arrest of more than a thousand suspects, and the identification of over 3 billion baht in circulated money.
According to Thai News Agency, the Economic Crime Suppression Division’s task force conducted searches at 46 locations nationwide. They prosecuted 442 legal entities with a total registered capital of 1,189 million baht. The operation revealed a cash flow exceeding 3,600 million baht, with over 1,000 suspects, including more than 250 Chinese nationals, implicated. These individuals were found colluding to register companies as fronts for various business activities, such as shops, restaurants, Chinese supermarkets, and tour businesses. The operation also uncovered illegal activities related to real estate ownership and companies that did not actu
ally exist. These entities were used to open mule accounts and receive money transfers from online criminal gangs, call centers, and for money laundering purposes. Seized evidence included 34 bankbooks, 22 land ownership documents worth 254 million baht, and 494 company seals.
The investigation into this corruption plan revealed two main strategies: using Thai nationals as agents or nominees for foreigners to open companies, and registering mule companies to open bank accounts for transferring benefits from technology crimes and laundering money. Pol. Lt. Gen. Thatchai Pitaneelabut, assistant national police chief acting as national police inspector, expressed shock over the involvement of lawyers, auditors, and accounting offices in document falsification for company registrations, which poses a significant threat to national security. While Thai participants received minimal compensation, foreigners exploited the system, resulting in billions of baht in losses.
Mr. Napintorn Srisanpang, Deputy Minister of
Commerce, highlighted that part of this network is linked to illegal business operations and online crimes, serving as a channel for money laundering and the acquisition of real estate, land, condos, and luxury housing projects. This has severe implications for the economic system and national security. The ministry is intensifying electronic risk assessments and retrospective checks on all Chinese companies, scrutinizing potential duplicate registrations and the legitimacy of individuals registering companies. They are also investigating unusual locations of businesses, rigorously verifying identities, and implementing stringent checks. Furthermore, the government has established an ad hoc committee to integrate efforts with various agencies for continuous inspection and follow-up.