Crackdown on Illegal Foreign Businesses and Call Centers in Thailand Intensifies

In recent years, Thailand has intensified its crackdown on foreign nationals operating illegal businesses through Thai nominees. This practice, where foreigners use Thai citizens as front figures to circumvent foreign ownership laws, has been particularly widespread in the tourism and real estate sectors. According to a report from The Nation on February 25, 2025, a task force led by the Ministry of Commerce prosecuted 820 illegal nominee businesses between September 2024 and January 2025, with estimated damages amounting to 12.5 billion baht. (nationthailand.com)

The issue is not confined to a specific region but is prevalent across the country. Authorities have therefore carried out raids in multiple provinces, including popular tourist destinations such as Phuket, Krabi, and Surat Thani. During these operations, police arrested both foreign and Thai nationals involved in illegal activities within the restaurant, international school, hotel, and real estate development sectors. The estimated financial damage from these operations is significant, exceeding one billion baht in Phuket alone.

In parallel with the crackdown on nominee businesses, Thai authorities have increased their presence to combat illegal call centers and scam networks, often run by foreign operators. These call centers, located along border areas with Myanmar and Cambodia, have become hubs for telephone and online scams targeting both Thai and international victims. To enhance efforts against these networks, Thailand and China agreed in January 2025 to establish a coordination center at the Thai National Police headquarters in Bangkok, with an additional center planned in Mae Sot District, near the Myanmar border. These centers are expected to begin operations in February 2025, aiming to facilitate information exchange and coordinated actions between the two countries. (reuters.com)

Despite these measures, critics argue that the crackdown has not been sufficient. According to a Reuters report on February 27, 2025, only a small fraction of those working in these scam centers have been rescued, and there are increasing demands for broader actions to completely dismantle these illegal operations. This includes the need to target the masterminds behind the businesses and the Thai officials who may be involved in corruption, enabling these operations to persist. (reuters.com)

In summary, Thailand faces a widespread challenge with foreign nationals operating illegal businesses through Thai nominees, as well as scam centers frequently led by foreign networks. Authorities have intensified their efforts to combat these issues through legal actions and international cooperation, but further and more comprehensive measures may be required to completely eliminate these illegal operations and protect both the Thai economy and the public.