All foreign investments worth €2 million or more will be assessed through a foreign investment screening mechanism established under legislation discussed on Monday at the parliamentary Finance Committee.
The bill’s purpose is to implement the European regulation for the control of direct foreign investments, a Finance Ministry representative told MPs while presenting changes made to the draft legislation.
The representative explained that the bill provides for conditions under which an obligation is created to notify the intended direct foreign investment and security, the criteria and factors that can be taken into account during the control of direct foreign investment, the control procedure and the type of information required during the screening of foreign investment.
The legislation also provides that the competent authority will be the Finance Ministry.
Finance Ministry to oversee new regulatory framework implementation
Based on the bill, the control of direct foreign investments will be able to go back 15 months. Consequently, in the case that it is found that there are shadows around the investment capital, then it can be cancelled.
This is something that has already been in effect for the last five years on the basis of the European regulation.
A Finance Ministry representative, speaking to parliament, said the intention is the establishment of a foreign investment screening mechanism.
The representative said that investments in the sectors of banking, health, real estate, tourism and other major investments will be able to be controlled.
Banking, healthcare, property and tourism sectors among those covered
All involved bodies supported the bill, emphasising that through the legislation Cyprus will exchange information about investments with other countries.
AKEL MP Andros Kafkalias stated that the goal of the regulation is the protection of the public interest.
Government targets September approval for EU compliance measure
It should be noted that the government’s goal is to approve the new legal framework before the end of September.