DBD proposes enhanced qualifications for accountants to prevent nominee practices

Introduction 

The proposed changes reflect the government’s commitment to strengthening professional ethics in the accounting field and safeguarding national economic interests. 

Background and legal context 

In prior nominee-related investigations, the DBD found that some accountants and accounting firms were directly or indirectly involved in advising foreign nationals to use Thai individuals as proxy shareholders or directors. These actions were designed to bypass restrictions under the Foreign Business Act B.E. 2542 (1999), which prohibits foreign ownership of 50% or more in certain industries without prior approval.  

Restricted business categories under the Act include, among others: construction, retail and wholesale (with capital below THB 100 million), hotels, tour services, restaurants, and general service activities. 

Key details of the draft regulation 

Draft title:

Announcement of the Department of Business Development on the Qualifications and Conditions for Being an Accountant (No. …), B.E. …  

Disqualification criteria:

Under the proposed regulation, an individual will lose eligibility to act as an accountant if they: 

• Assist, support, or engage in actions that involve acting as a nominee shareholder or proxy on behalf of a foreign person or entity; 
• Participate in or facilitate business arrangements with foreigners that violate the Foreign Business Act B.E. 2542; 
• Are found to have been involved in behaviour that undermines lawful and fair business conduct as defined by relevant legislation.  

Such conduct, even in the absence of a court conviction, may result in removal from the register of certified accountants. 

Additional penalties for accountants  

In addition to a civil penalty of up to THB 10,000 under Section 27 of the Accounting Act B.E. 2543 (2000), the draft regulation introduces disqualification from professional practice for those found to be involved in nominee-related activity. 

Reinstatement conditions  

Accountants who are disqualified under the new rule may regain their eligibility only if: 

• A period of two years has passed since the administrative fine or final court ruling; and 
• The individual has provided material testimony or evidence that contributes to legal proceedings under Section 36 of the Foreign Business Act. 

Purpose of the proposed changes  

According to the DBD, these stricter criteria are intended to protect the interests of law-abiding Thai and foreign business operators, while also ensuring that the accounting profession is not used as a channel to enable regulatory evasion.  

Regulatory status  

The draft announcement was open for public consultation via Thailand’s central legal platform between 23 April – 7 May 2025. The Department of Business Development is now in the process of reviewing feedback and finalising the regulation for formal issuance.  

Conclusion  

The draft regulation marks a significant shift in regulatory expectations regarding the ethical responsibilities of accounting professionals. While primarily aimed at the qualifications of accountants, the measure has broader implications for companies that engage external accounting services or operate with foreign ownership structures. 

Business owners and management are encouraged to: 

• Review their current accounting arrangements and internal controls; 
• Ensure that service providers or in-house accountants comply with the updated criteria; 
• Monitor further announcements from the DBD regarding the finalised regulation.  

Proactive alignment with these standards will help safeguard the organisation’s legal standing, promote transparency, and reduce the risk of regulatory scrutiny or reputational impact. 

Reference (in Thai): 

• DBD Official News – 28 April 2025.  
  Retrieved from the Department of Business Development.