By the second quarter of 2024, Ireland will commence the review of foreign investments to ascertain that they do not pose a threat to national security or public order before being accepted into the country.

This is regulated by the Screening of Third Country Transactions Act enacted on 31st October 2023.

The move is aimed at bolstering national security and safeguarding public order. Under this legislation, Ireland will assess and analyse incoming investments to ensure they do not pose any threats to the nation’s interests.

What Does the Act Apply to?

The Act defines ‘Third Country’ to include any countries outside Europe. 

One of the pivotal provisions of the Act includes transactions exceeding €2 million. These transactions require approval from the Minister for Enterprise, Trade, and Employment before they can be finalised and accepted into the country. This regulatory threshold is pinned on the country’s aim to protect the nation’s economic interests by carefully evaluating significant investments to mitigate potential risks.

The review process is set to be a multifaceted approach. It appears as though it will involve rigorous assessments to ensure the compatibility of foreign investments with Ireland’s national security and public order objectives.

This will include assessing the nature of the investments, their potential impacts on critical sectors, and any associated security concerns.

The Balance Between Security and Expanding the Economy

Ireland aims to strike a balance between fostering economic growth through foreign investments while safeguarding its own strategic interests and sovereignty.

As Ireland prepares to embark on this regulatory journey, stakeholders, including investors and governmental authorities, are encouraged to engage in constructive, consistent communication to ensure the efficiency of the screening process.

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