Canada: Adopted National Security Review of Investments Modernization Act

On 22 March 2024, the Canadian Senate adopted a Bill amending the Investment Canada Act (ICA), known as the National Security Review of Investments Modernization Act (Bill C-34), specifically to amend national security provisions. The Bill includes measures regarding the authorisation of the sharing of information on foreign investors with international partners, allowing for the sharing of investment data with the national investment authorities of third countries to facilitate national security controls and to address a common international security interest. The Bill transfers the administrative powers to the Minister of Innovation, Science and Industry to assess and manage national security risks. The Minister will be able to select information deemed worthy of protection, based on its sensitivity, within a judicial process to protect it from disclosure in enforcement actions arising from the ICA. The Minister may also unilaterally impose conditions on an investor as long as the review process is open. Finally, the amendment includes new requirements for investments in certain sectors, including a requirement for prior notification and deferral of investment until the review process is terminated.