Event Summary
On Tuesday, 29 July 2025, President Daniel Noboa submitted the “Organic Law for the Control of Irregular Capital Flows” to the National Assembly. This bill could require civil society organisations (CSOs) to provide the national government with information about the projects they implement, the funding they receive, and their financial statements. It also introduces grounds for dissolution that could be interpreted ambiguously. If approved, the law could negatively impact Ecuador’s civil society ecosystem, including social organisations, foundations, international donors, private companies, and others.
The proposed legislation opens the door to potential violations of the freedoms of association and expression. It establishes an unfavourable regulatory framework that could limit the ability of CSOs to carry out their work. One of the main concerns is the inclusion of discretionary grounds for dissolution, such as acting “against the fundamental rights of individuals, public order, or national security,” without defining what those terms mean.
Oversight of CSOs would be transferred to the Superintendency of Popular and Solidarity Economy, effectively treating social organisations as economic or commercial entities. The bill mandates that all CSOs implement integrity and transparency systems which, due to their lack of access to technical and financial resources, would disproportionately affect grassroots and community-based organisations.
Several civil society representatives have expressed concern over the proposed law, arguing that it is intended to silence criticism of the presidential administration. They note that if the goal is to address the financing of criminal groups, Ecuador already has laws in place to investigate and prosecute such crimes. Activists and environmental organisations have also spoken out against this law.