Phuket: American Expat Arrested, Violating Business Act
Phuket, Thailand — On Friday, February 14, 2025, Phuket Immigration Police apprehended 67-year-old American expatriate Donald Ray at Michelangelo’s Bar & Lounge Live Concert Music on Takuapa Road in Phuket’s Old Town. The arrest was made pursuant to a warrant issued by the Phuket Provincial Court, alleging violations of Thailand’s Foreign Business Act.
The Foreign Business Act is complex legislation designed to protect specific sectors of the Thai economy by restricting foreign participation. It employs a tiered list system; List 3 designates areas where Thai businesses are deemed unprepared to compete equally with international counterparts. This protectionist approach aims to nurture domestic industries and prevent them from being overwhelmed by foreign competition.
While authorities haven’t publicly detailed the allegations against Mr. Ray, List 3 of the Foreign Business Act encompasses a wide range of professional services, including accounting, legal services, engineering, architecture, and construction. This suggests Mr. Ray is suspected of facilitating the operation of Thai nationals or entities within these restricted sectors, thereby circumventing the Act’s protective measures.
The arrest occurred late Friday night, interrupting the live music venue’s activities. Police officers, accompanied by an interpreter, presented the warrant to Mr. Ray, informing him of his rights and the charges. Mr. Ray acknowledged his identity and confirmed this was his first arrest for such an offense. He was then taken to Phuket City Police Station for processing and further investigation.
This incident highlights the complexities of international business regulations, particularly in emerging markets. Thailand’s Foreign Business Act, while intended to foster economic growth, presents significant challenges for foreign entrepreneurs and investors. Violations can result in substantial fines, imprisonment, and deportation. Mr. Ray’s arrest serves as a cautionary tale, emphasizing the importance of thorough due diligence and strict compliance with Thai law. Further updates will be provided as the investigation proceeds. The incident has prompted discussion within Phuket’s expat community, underscoring the need for greater clarity and understanding of the Foreign Business Act and its implications for foreign residents involved in commercial activities.
