Tourism and Sports Minister Phiphat Ratchakitprakarn asked the police to investigate reports of members of Thailand Elite Card that have been linked with shady Chinese businesses.
Mr Phiphat said the case badly affected the image of the Tourism Ministry and Thai tourism industry.
He said during the application process, Thailand Privilege Card (TPC), the operator of Thailand Elite Card, will check personal data of applications for criminal records.
"If any of them are reported acting illegally, the minister will urgently withdraw those memberships," said Mr Phiphat.
As there was a report about Thailand Elite Card being sold overpriced abroad, Mr Phiphat said the ministry and TPC cannot be responsible for this issue as they cannot interfere with foreign businesses.
Mr Phiphat added that in the case of tourists using electronic cigarettes, which are illegal in Thailand, police cannot directly fine tourists. They can only submit the lawsuit to the court.
The Phuket Tourist Association said in addition to the current application process of Thailand Elite Card, TPC should consider connecting a digital database with international organisations, such as Interpol to verify criminal records.
The Thailand Elite Card has been popular among foreigners, particularly high spending tourists from Europe, Australia and China, who regularly visit Phuket since reopening last year.