BANGKOK: Thai police have broken up a large network that illegally helped foreigners, mostly Russians, to stay in Thailand long-term through the use of company nominees or shell companies, officials said on Friday (May 31).
Police said a 45-year-old Russian woman who came to Thailand in 2012 operated the scheme with a Thai woman who was listed as an executive or a shareholder of more than 270 companies in the southern province of Phuket.
Foreigners can operate a business in Thailand, but it must be a joint venture with a Thai partner except in specified cases, and they cannot own more than 49 per cent to protect local competitiveness.
The defendants offered a service in which foreigners could be listed as shareholders of a business with a Thai partner or be employed by a shell company owned by Thais in order to get a work permit, said Puttidej Bunkrapue, commander of the police Economic Crime Suppression Division.
A total of 98 foreigners, including 68 Russians, have been accused of operating businesses without a permit, which carries a maximum sentence of three years in prison and 1 million baht (US$27,000) fine, police said. In addition, 37 Thais were accused of offences related to the network.
Officials said the network is likely to have been in operation since 2016, but there has been a sharp increase in its customers since Russia’s invasion of Ukraine in 2022.
At least 50 of the foreigners have been officially charged as of Friday, said chief investigator Krit Woratat.
