The Screening of Third Country Transactions Act 2023 came into effect

On 6 January 2025, the Screening of Third Country Transactions Act 2023 (No. 28 of 2023), establishing a mechanism for screening foreign direct investment (FDI) on national security grounds, entered into force. The Act requires mandatory notification of transactions involving non-EU/EFTA entities if they gain control of an Irish asset or increase their stake in an undertaking beyond 25 or 50 per cent, provided the transaction value exceeds €2 million. The requirement applies to sensitive sectors, including critical infrastructure, technologies, essential inputs such as energy, raw materials and food security, data access, and media plurality. The screening authority is authorized to "call in" non-notifiable transactions within 15 months of their completion if concerns related to national security or public order arise. During the review process, which suspends transactions, the authority may approve, modify, or prohibit the transaction. Non-compliance attracts penalties, including fines ranging from €5,000 to €4 million, or imprisonment of up to five years. Appeals may be pursued through judicial review or adjudication. The regime also allows precautionary notifications and emphasizes assessing security risks based on control, ownership, and sectoral impact.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • eISB, Screening of Third Country Transactions Act 2023, https://www.irishstatutebook.ie/eli/2023/act/28/enacted/en/html, 31 Oct 2023
  • Matheson, Irish FDI Screening Regime – What You Need to Know, https://www.matheson.com/insights/detail/irish-fdi-screening-regime---what-you-need-to-know, 23 Jan 2025