The National Foreign Direct Investment Screening Office Act (Chapter 620 of the Laws of Malta) establishes a framework for screening foreign direct investments (FDIs) in Malta to safeguard national security and public order. This legislation aligns with Regulation (EU) 2019/452, which sets a framework for the screening of FDIs into the European Union.

Key Provisions of the Act:

• Establishment of the Screening Office: The Act establishes the National Foreign Direct Investment Screening Office (NFDIS), responsible for regulating and overseeing the screening of FDIs in Malta.
• Scope of Application: The Act applies to FDIs made or planned in Malta that may affect security or public order. It encompasses investments that enable effective participation in the management or control of a company engaged in economic activities in Malta. Portfolio investments are excluded from this scope.
• Definition of Foreign Investor: A foreign investor is defined as a natural person or an undertaking from a non-EU country intending to make or having made an FDI in Malta.
• Notification Requirement: Foreign investors and all parties involved in an FDI falling under the Act’s jurisdiction are required to notify the NFDIS about the investment. The notification must include information such as the ownership structure, ultimate beneficial ownership, value of the investment, products, services, business operations, and the source of funds.
• Screening Mechanism: The NFDIS is empowered to assess, investigate, authorize, condition, prohibit, or unwind FDIs on grounds of security or public order. It also collaborates with the European Commission and other EU Member States through a cooperation mechanism established by Regulation (EU) 2019/452.

For a comprehensive understanding of the Act, including detailed procedures and obligations, you can access the full text here: https://legislation.mt/eli/cap/620/eng