Extremist statements have authorities concerned about ethnic strife.
Participants in foreign conflicts can receive jail sentences of at least five years.
The proposed law, which would be supported by a loan from the World Bank, is being considered by Parliament. In other business news: optimism grows for the economy's future in southeast Europe.
Government action against the participation of local citizens in ISIL is crucial for the regional fight against terrorism, experts say.
A new agreement with Romania will boost the visa liberalisation process, moving Ukraine toward EU membership.