The 2012 Act on the Screening of Foreign Corporate Acquisitions  establishes  a  new  cross-sectoral  review  mechanism  designed  to secure national defense and to safeguard public order and security. The mechanism gives the government the authority to block an acquisition by a foreign – i.e. non-EU and non-EFTA – entity  of  a  domestic  business  if  the  government  believes  that  such  an  acquisition  poses threats of "severe damage" to the "fundamental interests" of society. 
In the defence and dual-use products sector, screening applies to all foreign acquirers (including those from within the EU and EFTA) and advance confirmation by the public authorities is required. In the civil sector, monitoring is targeted at Finnish enterprises considered critical to securing vital functions within society. First threshold of screening is when a foreign owner gains control of at least 10% of the aggregate number of votes conferred by all shares in the company, or a corresponding actual influence.
Amendments that entered into force on 11 October 2020 aligned the existing framework with exigencies of the European Union Regulation establishing a framework for the screening of FDI into the EU. Specifically, the rules add anticircumvention clauses and rules on the disclosure of confidential information; they also allowing for mitigation measures and follow-up on which the legislation hitherto did not contain explicit rules. As of 11 October 2020, foreign (non-EU and non-EFTA) acquisitions in the security sector also require advance confirmation. Foreign owners subject to screening can be non-EU/EFTA entities, with thresholds set at 10%, one third, and 50% of votes in a Finnish business.
"Section 1 - Objectives of the Act:
The objective of this Act is to screen, and, should a key national interest so require, restrict the transfer of influence to foreign nationals and foreign organisations and foundations in companies that are subject to screening.
Section 2 - Definitions:
In this Act,
1) key national interest means securing military national defence, functions vital to society, national security and foreign and security policy objectives, and safeguarding public order and security in accordance with Articles 52 and 65 of the Treaty on the Functioning of the European Union, if there is a genuine and sufficiently serious threat to a fundamental interest of society;
2) entity subject to screening means:
a) a defence industry enterprise;
b) a company that produces or supplies critical products or services related to the statutory duties of Finnish authorities essential to the security of society;
c) an organisation or business undertaking that is considered, when assessed as a whole, critical in terms of securing functions vital to society on the basis of their field, business or commitments;
3) foreign owner means:
a) a foreign national not domiciled in a European Union (EU) or European Free Trade Association (EFTA) Member State;
b) an organisation or foundation not domiciled within EU or EFTA Member States;
c) an organisation or foundation which is domiciled within EU or EFTA Member States but in which a foreign national referred to in subparagraph a, or an organisation or foundation referred to in subparagraph b, controls at least one tenth of the aggregate number of votes conferred by all shares in a limited liability company, or has a corresponding actual influence in another organisation or business undertaking;
4) defence industry enterprise means an organisation or business undertaking:
a) that produces or supplies defence materiel referred to in the Act on the Export of Defence Materiel (282/2012) or other products or services important for military national defence; or
b) whose export of products produced in Finland that are considered as dual-use items [...] is subject to authorisation under [Council Regulation (EC) No 428/2009 or the Act on the Control of Exports of Dual-Use Goods (562/1996)], or whose export of technology referred to in the EC Regulation or the said Act and used in its operations in Finland is subject to authorisation under the EC Regulation or the said Act;
5) corporate acquisition means an acquisition or other corresponding measure due to which a foreign owner gains ownership of a number of shares referred to in subsection 2 in an entity subject to screening; a corporate acquisition also means an organisation other than one referred to in paragraph 3 becoming a foreign owner as referred to in paragraph 3, if it has the influence referred to in subsection 2 in a company subject to screening.
An application under this Act shall be made concerning corporate acquisitions referred to in subsection 1, paragraphs 2a and 2b, and a notification under this Act may be made concerning a corporate acquisition referred to in paragraph 2c involving another entity subject to screening, when a buyer referred to in subsection 1, paragraph 3 gains at least one tenth, at least one third or at least one half of the total number of votes conferred by all shares in the company or corresponding actual influence in a limited liability company or other entity subject to screening. [...]
Regarding enterprises referred to in subsection 1, paragraph 4, the provisions of this Act on a foreign owner also apply to any natural person, organisation or foundation that is resident or domiciled in another EU Member State, apart from Finland, or in an EFTA Member State. The same applies to a Finnish organisation and foundation in which at least one tenth of the aggregate number of votes conferred by all shares in a limited liability company, or corresponding actual influence in an organisation or business undertaking, lies with a natural person or organisation or foundation that is resident or domiciled in an EU Member State, apart from Finland, or in an EFTA Member State.[ ...]" (Act on the Screening of Foreign Corporate Acquisitions ((172/2012), as amended by Act 682/2020, Sections 1 and 2 [unofficial translation, amendments up to 682/2020 included])
Act on the Screening of Foreign Corporate Acquisitions (172/2012), as amended by Act 682/2020, Sections 1 and 2
[<a href="https://tem.fi/documents/1410877/10579843/Final+2311+2010+EN+Finland+Act+on+the+Screening+of+Corporate+Acquisitions+-+unofficial+translation.pdf/54cb80e2-4b36-9106-4ca4-20cd0e078328/Final+2311+2010+EN+Finland+Act+on+the+Screening+of+Corporate+Acquisitions+-+unofficial+translation.pdf?t=1606744802292">Act</a>]