On 24 February 2026, Thailand’s Cabinet acknowledged a consolidated progress report on the Ombudsman’s recommendations concerning the use of Thai “nominees” (proxy individuals or entities) to hold land or real estate on behalf of foreigners.
The Cabinet minutes record (i) inter-agency enforcement instructions under existing powers, and (ii) ongoing workstreams to amend key laws (including the Land Code and the Foreign Business Act). The minutes themselves do not change the law; any amendments would require separate legislative action.
The official Cabinet minutes (24 February 2026) are available in Thai.
What matters most is not only intensified enforcement — but proposed legal amendments that could materially increase risk for nominee land structures.
What Is Already Happening (Enforcement Under Existing Law)
The minutes confirm a coordinated, multi-agency enforcement model.
AI-Based Corporate Screening (IBAS)
Since 1 October 2025, the Department of Business Development (DBD) has used its Intelligence Business Analytic System (IBAS).
IBAS analyzes corporate registry data together with supporting government databases to flag higher-risk entities for further investigation.
Cross-Agency Data Integration
The report refers to formal cooperation mechanisms, including:
- Data exchange between the DBD and the Land Department
- An MOU between the DBD and the Central Investigation Bureau on nominee structures and corporate “mule” accounts
Active cases are ongoing. The minutes mention a case in Rayong and Chonburi involving 72 rai, which authorities state is under legal proceedings in connection with alleged nominee arrangements.
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Priority Sectors
Enforcement currently prioritizes six sectors:
- Tourism
- Land trade and real estate
- E-commerce, logistics and warehousing
- Agriculture
- Hotels and resorts
- Construction
These are identified as higher-risk for foreign control through proxy arrangements.
Provincial Enforcement Model
The minutes also reference “Operation Pithak Samui” and enforcement activity in Koh Samui (including 93 cases in construction-prohibited zones). It illustrates the direction of travel: coordinated, multi-agency enforcement in priority areas.
The Real Risk: Proposed Legal Changes
The more significant development lies in proposed amendments. These are not yet law — but they are formally under study.
Land Code (Section 94): from disposal to “forfeiture to the State” (proposal).
Today, Section 94 is structured around disposal of land unlawfully acquired or held by a foreigner (i.e., a disposal process that produces proceeds).
The minutes state that the Land Department is in the process of considering amendments that would:
• increase imprisonment and fines for foreigners who violate the Land Code; and
• where a foreigner unlawfully holds land ownership, deny any entitlement to receive money/proceeds from the disposal of the land under Section 94, and instead have the land taken so as to vest / be forfeited to the State (ตกเป็นของแผ่นดิน).
If enacted, this would remove the financial “exit” that Section 94 currently provides and materially increase downside risk for nominee land structures.
Foreign Business Act Amendments
The minutes state that the DBD has formed a working group to study amendments to the Foreign Business Act B.E. 2542 (1999) (FBA), including:
• tighter definitions (including “foreigner” and nominee/disguised structures)
• increased imprisonment and fines
• a stronger enforcement role for the DBD
These proposals remain under study.
AML “Predicate Offence” Track (Policy Direction)
The minutes also describe a long-term policy direction to designate offences under the FBA as “predicate offences” under the Anti-Money Laundering Act B.E. 2542 (1999) (AMLA), enforced through the Anti-Money Laundering Office (AMLO) framework. This is presented as a policy plan, not enacted law, and would require legislative change to be operational.
For context, similar “nominee / FBA circumvention as predicate offence” concepts appeared in draft AMLA amendment proposals opened for public consultation in 2025, indicating a longer-running policy direction.
For how these measures apply to a company that already holds land — disposal orders under Section 94, Foreign Business Act liability and the restructuring options still available — see landholding companies and 2026 nominee enforcement.
Centralized Regulatory Framework
The Ministry of Commerce is drafting a Prime Minister’s Office regulation to formalize a national committee structure to coordinate nominee enforcement.
A separate stand-alone nominee law had been under parliamentary study, but that process paused following the dissolution of the House of Representatives on 12 December 2025.
What This Means for Foreign Investors
Four points stand out:
- Enforcement is already coordinated and data-driven, with multi-agency screening and data-sharing.
- Nominee structures are a declared enforcement priority, with targeted sectors and active casework.
- A Land Code amendment is expressly under study that would deny sale proceeds under Section 94 and allow unlawfully held land to vest / be forfeited to the State.
- The minutes also point to an Anti-Money Laundering Act (AMLA) track: a long-term policy direction to designate offences under the Foreign Business Act as “predicate offences” under the Anti-Money Laundering Office (AMLO) framework. This would require legislative change and is not enacted law.
Even without new legislation, the practical risk has already increased: more coordination and better data access make non-compliant structures easier to detect and prosecute.
If the Land Code “forfeiture to the State” approach is enacted, the downside changes fundamentally—from forced disposal with proceeds to potential loss of the asset without any entitlement to proceeds.
Thailand has not changed the law yet. But the direction is clear: tougher enforcement now, and potentially tougher legal tools next.
For the DOL’s May 2026 enforcement measures that followed, see:
Need to Review Your Structure?
If you hold land, real estate, or operate a Thai company with mixed shareholding, now is the time to review your structure.
We advise foreign investors on compliant alternatives, including:
- Properly structured Thai companies
- BOI-promoted projects
- Long-term lease arrangements
- Treaty-based options (where applicable)
For a confidential assessment of your structure, contact us to arrange a consultation.
