Blood decals not limited to owning character

Hello everyone,
I am trying to apply blood wound effects to a character. I was able to apply blood decals, that are also animated, as can be seen here:

However, the issue I have is that decals are not 2D applied to a mesh, hence if I get close with another character, they will also see the blood on their skin:

What options do I have?

Thank you in advance,