After the committee on the prevention and suppression of nominee business and substandard products met on Wednesday, Commerce Minister Pichai Naripthaphan said relevant government agencies have prosecuted 39,186 cases concerning substandard and illegal products over the past nine months, with total damages of more than B2.07 billion.
Agencies also collected value-added tax (VAT) of B1.8bn from imported goods valued less than B1,500 baht per item, he said, reported the Bangkok Post.
Officials adopted a ‘notice and takedown’ approach by removing 10,378 illegal products from online platforms.
Mr Pichai said Prime Minister Paetongtarn Shinawatra made this issue a priority and directed the Commerce Ministry to take decisive action.
Given rapid changes in the global economy, illegal and substandard products are flooding the Thai market, which affects local small and medium-sized enterprises, he said.
Regarding the crackdown on nominee businesses, there have been 875 prosecutions, with damages amounting to B15.3bn, said Mr Pichai.
He said the cases were in the sectors being monitored including tourism, real estate, road transport, warehousing, construction and agricultural land trading businesses.
Napintorn Srisunpang, deputy commerce minister, said recent data indicates 46,918 companies were flagged as being potential nominee businesses.
To address this issue, provincial-level working groups will be set up to ensure comprehensive fact-checking.
The investigation will focus on tracing the origins of funding, assessing the operational capabilities of these businesses and examining any connections to foreign entities.
He said each province is expected to complete the investigations of all high-risk companies within three months, although provinces with a lot of companies on the watchlist may need more time and must report the progress every three months.
Mr Napintorn said the draft amendment of the Anti-Money Laundering Act is nearly complete, which will allow the authorities to confiscate assets of nominee-related individuals.
The draft will be submitted to the cabinet and parliament for approval, with all processes expected to be completed within three months, he said.
In addition, the Foreign Business Act is under review, with amendments based on recommendations from the Council of State, covering the framework, definitions of nominee businesses and penalties.