Licences and authorisations of companies belonging to or affiliated with persons on the international sanctions list could be withdrawn. The provision is contained in a legislative initiative of the Moldovan government, aimed at sanctioning Vladimir Plahotniuc and Ilan Shor, both under investigation in the “bank fraud” case, for acts of corruption.

According to the draft, the Broadcasting Council (CA) could withdraw the licences of companies owned by or affiliated to Shor and Plahotniuc. At the same time, according to the draft, the CA could be obliged to withdraw the licence if the TV channel promotes the image of the natural or legal person included in the list of international sanctions.

The draft law is to be sent to a meeting of state secretaries on Friday 9 December, after which it will be submitted for public approval and consultation. It will then be approved by the Cabinet of Ministers and subsequently by Parliament.

The main regulations of the so-called draft Magnitsky Moldova Law:

According to the Ministry of Justice (MoJ), the draft contains provisions that will clarify “in great detail” which specific individuals and legal entities will be subject to international sanctions transposed on the territory of our country.

“We are talking, first of all, about persons who have been included in international sanctions lists by other states or international organizations. Sanctions may also be imposed on persons who have not been directly included in certain sanctions lists, but who have various links with internationally sanctioned persons,” the MoJ announces.

Another block of provisions concerns the way international sanctions imposed by foreign states or international organisations are transposed into national law. One of these measures is that all those who will be included in a Magnitsky-type sanctions list in the United States will have all their assets frozen.

“This means that they will not be able to sell these assets, donate them or transfer them to other people. At the same time, they will be prohibited from making any assets available to these persons, as well as from providing any financial services to these persons, such as opening a bank account, making money transfers, taking out loans.

In the case of foreign citizens or stateless persons, in respect of whom international sanctions have been adopted, it will be possible to apply the measure of refusing them entry into the territory of Moldova. This will also serve as a basis for the annulment of any visas issued to the persons concerned, as well as for the refusal to grant them in the future.

Another important and impactful aspect of the draft law is the possibility of withdrawing licences and authorisations of companies owned by or affiliated with the listed persons. Let’s take the media and TV stations as an example. According to the draft, the Broadcasting Council will be able to withdraw the licences of companies owned by or affiliated to persons on the sanctions list. At the same time, according to the draft, the Broadcasting Council will be obliged to withdraw the licence if the TV channel promotes the image of the natural or legal person included in the international sanctions list,” according to the MoJ.

Also, according to the MoJ, according to the provisions of the draft, in order to coordinate the activity carried out by each public authority in its area of competence, an Inter-institutional Supervisory Council will be established, headed by the Prime Minister of Moldova and including the heads of the main authorities with competences in the field (MoJ, MIDR, MAI, MAEIE, BMA, BNM).

The UK Government announced on Friday, 9 December 2022, a list of sanctions targeting 30 corrupt political figures and human rights violators around the world, according to a UK Government statement.

The list includes the leader of the Shor Party, fugitive MP Ilan Shor, who was sentenced in 2017 to seven years and six months in prison for fraud and money laundering and placed under international wanted list, as well as the former leader of the Democratic Party of Moldova (PDM), Vlad Plahontiuc, placed under international wanted list and previously sanctioned by the US for corruption. Vladimir Plahotniuc and Ilan Shor are under investigation in the “bank fraud” case.

According to the British Embassy in Moldova, all assets held by Plahotniuc or Șor in the UK, or in any of the UK’s overseas territories such as the British Virgin Islands or the Cayman Islands, will be frozen: “UK citizens will be barred from all economic transactions with any of the sanctioned persons who are refused entry to the UK”.

The UK government’s decision comes three days after Moldovan President Maia Sandu called on democratic countries at the International Anti-Corruption Conference 2022 to stop harbouring “fugitive criminals and stolen goods from other countries”.

Also on Friday, Justice Minister Sergiu Litvinenco announced the drafting of the so-called Magnitsky Moldova Law, which provides, among other things, that the state will be able to take over the administration of the assets of persons on the sanctions list and their affiliates.