(1) The Secretary of State may not designate a person under regulation 5 (power to designate persons) unless the Secretary of State -

(a) has reasonable grounds to suspect that that person is an involved person, and

(b) considers that the designation of that person is appropriate, having regard to -

(i) the purposes stated in regulation 4 (purposes), and

(ii) the likely significant effects of the designation on that person (as they appear to the Secretary of State to be on the basis of the information that the Secretary of State has).

(2) In this regulation an "involved person" means a person who -

(a) is or has been involved in -

(i) undermining or threatening the sovereignty, territorial integrity, international personality or constitutional order of Bosnia and Herzegovina,

(ii) undermining or threatening the peace, stability or security of Bosnia and Herzegovina,

(iii) obstructing the implementation of the GFAP, or

(iv) any other action, policy or activity which undermines the GFAP,