Police break up network aiding foreigners to stay in Thailand. Thai police have dismantled a vast network that illicitly assisted foreigners, primarily Russians, in securing long-term stays in Thailand through fraudulent means involving shell companies, officials reported on Friday. ASEAN NOW

Foreigners, accused of operating a business without a permit, are summoned at Central Investigation Bureau in Bangkok, Thailand, Friday, May 31, 2024. (AP Photo/Sakchai Lalit)

 

Thai police have dismantled a vast network that illicitly assisted foreigners, primarily Russians, in securing long-term stays in Thailand through fraudulent means involving shell companies, officials reported on Friday.

 

The operation, spearheaded by a 45-year-old Russian woman and a Thai accomplice, facilitated foreign residency by setting up bogus companies. This network, based in Phuket, involved the Thai woman being listed as an executive or shareholder in over 270 companies. Under Thai law, while foreigners can operate businesses, they must do so as part of a joint venture with Thai nationals, holding no more than 49% ownership to protect local economic interests.

 

The fraudulent scheme worked by listing foreigners as business shareholders or employees of these shell companies, thus enabling them to obtain work permits. Commander Puttidej Bunkrapue of the Economic Crime Suppression Division detailed how this service circumvented legal requirements for business operations and work permits.

 

Foreigners, accused of operating a business without a permit, are summoned at Central Investigation Bureau in Bangkok, Thailand, Friday, May 31, 2024. (AP Photo/Sakchai Lalit)

 

The crackdown led to charges against 98 foreigners, including 68 Russians, accused of operating businesses without proper permits. This offense is punishable by up to three years in prison and a fine of one million baht (£22,000). Additionally, 37 Thais have been implicated in related offenses.

 

This illicit network is believed to have been active since 2016, with a notable surge in clients following Russia's invasion of Ukraine in 2022. Chief investigator Krit Woratat confirmed that over 50 foreigners had been officially charged by Friday.

 

Phuket, a well-known tourist hotspot, especially popular among Russians, has seen an influx of Russian visitors, with over 90,000 arrivals from 2019 to early 2024. Furthermore, the number of companies registered under Russian names in Phuket has dramatically increased, with over 1,600 registrations from 2023 to early 2024, compared to about 30 annually from 2016 to 2022.

 

This story underlines the significant challenges authorities face in maintaining legal compliance amidst increasing foreign interest in residency and business opportunities in Thailand.

 

-- 2024-06-01