Thai Authorities Bust Underground Operation Helping Foreigners Skirt Immigration Laws

Thailand, known for its vibrant culture, stunning beaches, and delicious cuisine, has recently been in the spotlight for a different kind of activity – illegal activities involving foreigners, mostly Russians, trying to skirt the rules to stay in the country long-term. It’s like a plot twist in a movie, but unfortunately, this is real life. Thai police recently uncovered a large network that facilitated these illegal activities through the use of company nominees or shell companies, a scheme that has been operating since 2016 but saw a surge in customers following Russia’s invasion of Ukraine in 2022.

The masterminds behind this operation were a 45-year-old Russian woman and her Thai accomplice, who were involved in over 270 companies in the province of Phuket, a popular destination for both tourists and those looking to set up shop under the radar. The scheme involved offering services where foreigners could be listed as shareholders of businesses with Thai partners or could work for shell companies owned by Thais to obtain work permits. Sounds like a complicated web of deceit, doesn’t it?

The consequences for these actions are no joke – a maximum sentence of three years in prison and a hefty fine of a million baht. No one wants to end up behind bars in a foreign country, that’s for sure. Thai law stipulates that foreigners can operate a business in Thailand, but it must be a joint venture with a Thai partner, with the foreigner owning no more than 49% to protect local competitiveness. It seems like these individuals were trying to bend the rules to their advantage, but the long arm of the law eventually caught up with them.

Phuket, with its crystal-clear waters and bustling tourist scene, has long been a magnet for visitors, including a significant number of Russians. Over 90,000 Russians flocked to the province between 2019 and early 2024, with a notable increase in company registrations under Russian names during this period. More than 1,600 companies were registered under Russian names in just a year, compared to a mere 30 per year in the preceding years. The authorities are clearly keeping a close eye on these activities and cracking down on those trying to circumvent the law.

In a twist of fate, at least 50 individuals have already been officially charged, with more likely to follow suit. It’s a stark reminder that trying to outsmart the system can have serious consequences. As the investigation continues, it sends a clear message that Thailand will not tolerate illegal activities, no matter how creative the schemes may be. So, if you’re thinking of pulling off a fast one in the Land of Smiles, think again – the consequences might not be worth it.