The Finnish government is overhauling its foreign investment screening process to enhance national security and safeguard the country's interests.
What happened
The reform will expand the scope of screening to include so-called greenfield projects, which involve foreign investments generating new business. This will cover areas such as port and aerodrome infrastructure, strategic raw materials, large energy projects, and data centers.
The new rules will require prior authorization for investments covered by the act. If necessary, conditions can be imposed to mitigate security risks, or authorization can be denied. Failure to comply with the rules can result in significant penalties, including fines of up to EUR 10 million for corporations and EUR 500,000 for private individuals.
The National Emergency Supply Agency and the Ministry of Economic Affairs and Employment will be involved in the two-stage authorization procedure. The amendments are set to enter into force on April 1, 2027, and will repeal the existing Act on the Screening of Foreign Corporate Acquisitions.
