Police arrested two foreigners and two Thai nationals for illegally operating international schools in Phuket through nominee arrangements.
The arrests followed a wider crackdown by Phuket Provincial Police and Chalong Police Station on foreign-owned businesses suspected of violating Thai law in the Chalong and Rawai areas.
During the investigation, officers identified three international schools that police allege were operating in breach of the Foreign Business Act.
According to investigators, two foreign nationals controlled the businesses while two Thai nationals assisted with the establishment and registration of the companies, allowing the schools to operate through nominee arrangements.
After gathering evidence, police obtained arrest warrants for four suspects, comprising two foreign nationals and two Thai nationals. Authorities did not disclose the identities or nationalities of the foreign suspects.
On Tuesday, August 5, officers raided schools and suspects’ accommodations and arrested all four suspects before transferring them to investigators for legal proceedings under the Foreign Business Act.
Police said the investigation is continuing to identify any additional suspects or companies that may have been involved.
Chalong Police Station also reminded foreign business operators to comply with Thai law and warned Thai nationals not to allow their names to be used as nominees, saying those involved could face the same legal penalties as foreign business operators found to have violated the law.
Authorities added they will continue enforcing the Foreign Business Act against illegal business operations and those who facilitate nominee schemes.
Anyone with information about similar activities is encouraged to contact police by calling 191 or Chalong Police Station on 076-381247.
The operation follows new measures introduced by the Department of Business Development (DBD) under the Ministry of Commerce on August 1 to tighten scrutiny of nominee arrangements.
Under the new regulations, companies with foreign investors must provide evidence showing the source of investment funds used by Thai shareholders.
Applicants are also required to submit a written explanation of the investment together with three months of bank statements from the Thai investor or the legal entity providing the funds.
The story 2 Thai, 2 foreigners arrested for illegally operating international schools in Phuket as seen on Thaiger News.
