New legislation on transfer of security-sensitive activities and certain property entered into force in Sweden on 1 January 2021. Amendments to the Protective Security Act placed new obligations on operators of security sensitive activities who are considering such a transfer. Operators of security-sensitive activities must carry out a protective security assessment, a suitability examination and a consultation with the Armed Forces or the Swedish Security Service if the operator intends to transfer all or any part of its security sensitive activities; or property that is of significance to Sweden’s security or an international protective security commitment that is binding on Sweden, with the exception of transfers of real property. A transfer may be prohibited if it is not appropriate from a protective security standpoint. Previously, and since the 1 January 2020, an amendment to the same law introduced the obligation to investors of entering into a protective security agreement on situations such as public procurement and public building contracts. The legislation is nationality neutral.
"Chapter 1 - Scope of the law

The law applies to practitioners of security-sensitive activities
Section 1:   
This Act applies to anyone who to some extent conducts activities that are important for Sweden's security or that are covered by an international commitment on security protection for Sweden (security-sensitive activities).
The law also contains provisions that apply to those who intend to transfer shares or participations in security-sensitive activities and on international cooperation in the field of security protection.

What is meant by security protection
Section 2:   
Security protection refers to the protection of security-sensitive activities against espionage, sabotage, terrorist crimes and other crimes that may threaten the activities, as well as protection in other cases of security-classified information.
Security-classified information refers to information relating to security-sensitive activities and which is therefore covered by secrecy in accordance with the Public Access to Information and Secrecy Act (2009: 400) or which would have been covered by secrecy in accordance with that Act, if it had been applicable.

Chapter 2 - Basic provisions on security protection

Transfer of security-sensitive activities and certain property
Section 7:
An operator must conduct a specific protective security assessment and suitability examination in accordance with Section 8 and a consultation in accordance with Section 9 if the operator intends to transfer:
1. all or any part of its security-sensitive activities; or
2. property that is of significance to Sweden’s security or an international protective security commitment that is binding on Sweden.
The first paragraph does not apply to transfers of real property.
The Government may issue regulations on further exemptions from the first paragraph. If there are special grounds to do so, the Government may also order such exemptions in individual cases.

Specific protective security assessments and suitability examinations
Section 8:
Before proceedings for a transfer referred to in Section 7 are initiated, the operator must, through a specific protective security assessment, identify any classified information or other security-sensitive activities to which the transferee may gain access and that require protective security.
Based on the specific protective security assessment and other circumstances, the operator must examine whether the transfer is appropriate from a protective security standpoint.
The specific protective security assessment and suitability examination must be documented.
If the suitability examination leads to the assessment that the transfer is inappropriate from a protective security standpoint, the transfer must not be undertaken.

Consultation, injunctions and prohibitions
Section 9:
If the suitability examination under Section 8 leads to the assessment that the transfer is not inappropriate from a protective security standpoint, the operator must consult with the public authority designated by the Government (consultation authority).
The consultation authority may decide to impose injunctions on the operator to take measures to fulfil its obligations under this Act and regulations issued in connection with it.
The obligation to consult and what is stated about the operator in the second paragraph also apply to anyone who intends to transfer shares in security-sensitive activities, except for shares in limited companies that are public under the Swedish Companies Act (2005:551).

Section 11:
If a decision to impose injunctions under section 9 is not complied with or if the transfer is inappropriate from a protective security standpoint even if additional measures are taken, the consultation authority may decide that the transfer must not be undertaken (prohibition)."
(Protective Security Act (2018:585), as amended 1.1.2021; Chapter 1, Sections 1 and 2; Chapter 2, Sections 7-9 and 11 [google translation/unofficial translation])
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"2 ch.
§ 6 State authorities, municipalities and regions that intend to carry out a procurement and enter into an agreement for goods, services or construction contracts
must ensure that a security protection agreement states how the requirements for security protection according to § 1 must be met by the supplier if
1. the procurement contains security-classified procurement poisons in the security protection class confidential or higher, or
2. the procurement in general refers to or gives the supplier access to secure sensitive activities of corresponding importance to Sweden's security. 
The operator must check that the supplier complies with safety the protection agreement. 
What is stated in the first and second paragraphs also applies to individual works joint ventures that enter into contracts for goods, services and construction contracts with external suppliers." (Protective Security Act (2018:585), as amended by Law 2019:985, effective 01.01.2020, Section 6 [unofficial translation])
Protective Security Act (2018:585), as amended 1.1.2021; Chapter 1, Sections 1 and 2; Chapter 2, Sections 7-9 and 11
Protective Security Act (2018:585), as amended by Law 2019:985, 01.01.2020, Section 6
[<a href="https://www.riksdagen.se/sv/dokument-lagar/dokument/svensk-forfattningssamling/sakerhetsskyddslag-2018585_sfs-2018-585">Act</a>],[<a href="https://www.lagboken.se/Lagboken/start/ordning-och-sakerhet/sakerhetsskyddslag-2018585//d_3805871-sfs-2019_985-lag-om-andring-i-sakerhetsskyddslagen-2018_585 ">Amendment</a>],[<a href="https://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=DAF/INV/RD(2020)13&docLanguage=En">Investment policy related to national security, Notification by Sweden</a>]