OTTAWA Dec 19 The Canadian government released
on Monday the guidelines of its national security review of
investments, laying out what factors it looks at when
considering whether a corporate deal poses a security risk.
An investment by foreigners that takes over all or part of a
Canadian company or establishes a new business in Canada can be
subject to a national security review.
Among the issues the government may look at are what effects
the investment could have on Canadian defense capabilities, the
security of critical infrastructure and the transfer of
sensitive technology out of the country, according to the
The government may also scrutinize the potential for the
investment to allow for foreign surveillance or to have an
impact on Canada's foreign relationships.
Canada can block the proposed investment or set specific
conditions on the deal if it so chooses. The government has 45
days from when it is notified of an investment to decide whether
a national security review is necessary, which can also be
extended by an additional 45 days.
The release of the guidelines is meant to give greater
clarity to companies looking to invest in Canada, the government
said. Canada has come under fire in the past for what critics
have said is an opaque process.
The government said it plans to introduce changes to
existing legislation that will require annual reporting on the
administration of its security regulations.
(Reporting by Leah Schnurr; Editing by Matthew Lewis)