New Law Enhances Framework for Targeted Financial Sanctions

The government of “the former Yugoslav Republic of Macedonia” has adopted a new law aimed at strengthening its framework for targeted financial sanctions against terrorism. The law introduces several key measures to enhance the country’s ability to prevent and combat terrorist financing.

Prohibition on Transactions with Designated Persons

One of the most significant changes is the prohibition on the transmission, conversion, transfer or disposal of property owned or controlled by designated persons, as well as the prohibition on establishing or prolonging business relationships with such individuals or entities. The definition of “property” is broad and includes all funds, assets, and economic resources.

International Cooperation

The law also establishes procedures for implementing financial measures in response to requests from competent authorities of other countries. This allows for a more targeted approach to combating terrorist financing and enhances international cooperation.

Designation of National Authorities

In addition, the law provides for the designation of national authorities responsible for proposing designations under UN Security Council Resolution 1373. This will ensure that there is a clear authority responsible for making decisions on designations and implementing financial measures.

Protection for Bona Fide Third Parties

The new law also addresses the issue of protection for bona fide third parties affected by freezing mechanisms. Bona fide third parties can now submit requests to competent courts to obtain independent rights over property subject to financial measures.

Areas for Improvement

However, there is still a small gap in the law regarding the implementation of financial measures by “entities” defined as those subject to anti-money laundering and combating the financing of terrorism (AML/CFT) laws. The authorities are encouraged to ensure proper guidance for other sectors beyond just financial institutions.

Guidelines for Application

The adoption of guidelines for the application of financial measures is also underway, which will provide further clarity on how to implement these measures in practice. Once adopted, these guidelines are expected to address Deficiency No. 1 and provide a clear and comprehensive framework for freezing terrorist funds.

Conclusion

Overall, the new law represents an important step forward in strengthening Macedonia’s framework for targeted financial sanctions against terrorism. The law’s provisions will help prevent and combat terrorist financing, while also enhancing international cooperation and protecting bona fide third parties affected by freezing mechanisms.