Financial Sanctions: New Provisions Strengthen Fight Against Terrorist Financing
The government of “the former Yugoslav Republic of Macedonia” has introduced new provisions aimed at preventing the transmission, conversion, transfer, or disposal of property linked to terrorist activities. This significant move is a part of the country’s efforts to combat terrorist financing.
Broad Definition of Property and Targeted Financial Sanctions
The new Law on International Mutual Legal Assistance in Criminal Matters (IRM Law) defines “property” broadly, covering all funds, other assets, and economic resources. The law also provides for targeted financial sanctions against individuals and entities suspected of involvement in or connection to terrorist activities.
Key Measures
- Prohibition on the transmission, conversion, transfer, or disposal of property owned, used, disposed of, or controlled by designated persons.
- Prohibition on making available property to designated persons.
- Prohibition on establishing or prolonging business relationships with designated persons.
Guidance for Application of Financial Measures
The Law introduces guidance for the application of financial measures, which is expected to provide a clear and comprehensive framework for freezing terrorist funds. The draft guidelines are currently under review and are expected to be adopted soon.
Room for Improvement
Experts note that there is still room for improvement. For instance, the Law does not contain sufficient indications on how financial measures should be implemented once a designation is made. Additionally, authorities are encouraged to provide guidance for other sectors beyond financial institutions.
Addressing Deficiencies
The new IRM Law also addresses several deficiencies identified in previous evaluations:
- Extending legislation to freezing under procedures initiated by third countries and funds or assets controlled by designated persons.
- Introducing a national designating authority for UNSCR 1373.
- Providing protection to the interests of bona fide third parties affected by the freezing mechanism.
De-Listing Requests and Unfreezing Funds
The Law includes provisions for considering de-listing requests and unfreezing funds or other assets of delisted persons or entities. Experts recommend that publicly known procedures for considering de-listing requests and unfreezing assets be implemented.
Conclusion
Overall, the new IRM Law represents a significant step forward in the country’s efforts to combat terrorist financing. However, further refinement is needed to ensure the effective implementation of these measures.