Aug. 1 (UPI) — Ecuadorian President Daniel Noboa has introduced a bill in the National Assembly to regulate the funding and activities of non-governmental organizations, particularly those that receive money from abroad.
The proposal would create a mandatory registry for nonprofit entities, require regular financial reporting and allow the government to suspend or revoke operating permits if NGOs engage in “activities incompatible with the national interest.”
If approved, Ecuador would join a regional push that has taken shape over the past year in countries such as Peru, El Salvador and Paraguay.
According to the Ecuadorian government, the bill aims to bring greater transparency to the operations of NGOs, many of which it says operate without clearly disclosing their funding sources, international ties or true objectives.
“I’m not attacking NGOs. Some of them do honorable work and help people in Ecuador. Those organizations won’t have problems because they’ll be able to explain where their money comes from,” Noboa said.
Although the bill does not yet specify penalties, it would require organizations to disclose their donors, provide documentation for expenses and avoid political activities not explicitly authorized in their charters.
Civil society groups in Ecuador have voiced concern, warning the measure could open the door to arbitrary restrictions and potential censorship.
In March, Peru’s Congress passed a law expanding the powers of the Peruvian Agency for International Cooperation to audit foreign-funded projects. The law allows fines of up to $500,000 and authorizes the suspension of organizations that use those funds to bring legal action against the state — a common practice in human rights and Indigenous advocacy.
Despite opposition from more than 70 domestic NGOs and international groups, including the Inter-American Commission on Human Rights and Human Rights Watch, President Dina Boluarte’s government defended the law as a way to “organize” international cooperation.
In El Salvador, the ruling-party-controlled legislature approved the Foreign Agents Law in May. The law imposes a 30% tax on foreign donations, requires registration in a special government registry and gives the executive branch authority to sanction or shut down organizations it accuses of meddling in domestic affairs.
Human rights groups have condemned the Salvadoran law, saying it restricts the work of humanitarian organizations and independent media.
In Paraguay, a regulation enacted in November 2024 requires all nonprofit organizations to register with the Ministry of Economy and Finance, file biannual reports on income and expenses and disclose any ties to international agencies.
The measure prohibits unregistered NGOs from signing agreements with the state and includes penalties ranging from suspension of activities to the permanent revocation of legal status.
Paraguayan and regional organizations have warned that the law criminalizes international cooperation and could seriously undermine human rights advocacy.
Critics say these measures echo laws previously adopted in Venezuela and Nicaragua, where “foreign agent” and “sovereignty defense” legislation has been used to shut down organizations that report human rights violations or criticize the government, under the pretext of foreign interference.
Governments backing these laws argue they aim to strengthen transparency, prevent illicit financing and block foreign influence.
But organizations including Amnesty International, the U.N. High Commissioner for Human Rights and the IACHR warn the measures are part of a broader pattern of shrinking democratic space in the region, where state control is prioritized over civic participation.