Government checks investments that might pose a risk to national security

What has changed?

Does your company carry out processes vital to society? Or does your company have sensitive technology? You need to report changes in who has control of the company to the Bureau for Verification of Investments (Bureau Toetsing Investeringen, BTI).

A security check is mandatory for investments, mergers, and acquisitions that may pose a risk to national security. This security check will be in place for 2 types of companies in the Netherlands:

• suppliers of critical processes
• companies that have sensitive technologies

Investments, mergers, and acquisitions in these types of companies may lead to national security risks.

Both investors in suppliers of critical processes and in companies that have sensitive technologies as well as these companies themselves must report changes in control of the company concerned. You must submit the report to the Bureau for Verification of Investments, BTI (in Dutch). The BTI will then assess whether or not there is a risk to national security. If such a risk is detected, the BTI may set conditions for the investment or even prohibit the investment.

This security check applies to investments stemming from any country.

For whom?

• Suppliers of critical processes. These processes are so vital to Dutch society that outages or disturbances may lead to large scale social disruption.
• Companies that own or manage sensitive technologies. These companies have knowledge and/or information that when leaked, may have serious effects on national security.
• Investors

When?

The Investments, Mergers and Acquisitions Security Screening Act (Wet veiligheidstoets investeringen, fusies en overnames, Vifo) came into force on 1 June 2023, and will be effective retroactively from 8 September 2020.