Restrictive anti-NGO law enters into force causing widespread concern among CSOs

Event Summary

On 23 October 2025, President Santiago Peña passed Decree 4806 regulating and thereby puting into effect Law 7363 on control, transparency and accountability of Non-Profit Organizations (NPOs). This law, dubbed “Anti-NGO Law” or “Garrote Law” by civil society had been enacted in November 2024 and was awaiting subsequent regulation for more than eleven months, creating widespread uncertainty for civil society organizations concerned about the impending entry into force of this law. Pro-government parliamentarians had demanded for its regulation, arguing that there is need for increased transparency from CSOs.

The law has been widely criticized for placing undue restrictions on the right of association. Key concerns include:

• Broad categories of organisations subjected to the law, defined as all those that receive national or international public and private funds and that participate in public policies, understood, among other things, as those public actions “(…) that contribute, influence or have a direct impact on the approval of regulations of general scope” (Art. 4).
• Excessive state control over non-profit organizations (NPOs), with duplicative registration requirements and harsh penalties for non-compliance.
• Vague and ambiguous language that leaves room for broad interpretation and abuse, potentially threatening the operational independence of CSOs.
• Risks to the privacy and security of individuals within civil society organizations, as well as those they support.
• The law may also discourage media outlets from criticizing the government, given the potential for punitive measures.
• The regulatory uncertainty and restrictive environment created by the law are expected to have a paralyzing effect on civil society and to discourage international donors from engaging in Paraguay

The law thus subjects CSOs to arbitrary state oversight without proper avenues for defense, undermining their autonomy and role in promoting human rights, democracy, and social welfare. CSOs warn about the discretionary control embedded in the law that enables its targeted use against civil society actors critical of the state. The law is seen as a tool for state surveillance, rather than a transparency mechanism, and could be used to silence opposition voices, especially those critical of the government.

Different national civil society actors and international organizations have warned of negative consequences for the exercise of fundamental freedoms and democratic rights, including Codehupy, TEDIC, the Inter-American Commission on Human Rights, several UN Special Rapporteurs, Amnesty International, the Latin American and Caribbean Network for Democracy (Redlad) and the Committee to Protect Journalists.

With the entry into force of the law, CSOs are required to register with the Integrated System for the Administrative Registration and Control of Legal Persons, Legal Structures, and Final Beneficiaries within 90 days with those already registered required to update their information within 30 days.

The entry into force of Law 7363 was celebrated by politicians from the ruling party, while sectors of the opposition have once again pointed out a clear government intention to silence those who may present critical voices. CSO leaders have indicated that they will proceed to study the regulation and are preparing further actions, including filing an action of unconstitutionality before the Supreme Court, requesting precautionary measures, and pursuing strategic litigation to protect fundamental freedoms of association and expression.

• Las amplias categorías de organizaciones sujetas a la ley, definidas como todas aquellas que reciben fondos públicos y privados nacionales o internacionales y que participan en políticas públicas, entendidas, entre otras definiciones, como aquellas acciones públicas «(…) que contribuyen, influyen o tienen un impacto directo en la aprobación de normativas de alcance general
• El control excesivo del Estado sobre las organizaciones sin fines de lucro (OSFL), con requisitos de registro duplicados y sanciones severas por incumplimiento.
• Un lenguaje vago y ambiguo que deja margen para interpretaciones amplias y abusos, lo que podría amenazar la independencia operativa de las OSC.
• Riesgos para la privacidad y la seguridad de las personas que forman parte de las organizaciones de la sociedad civil, así como de aquellas a las que apoyan.
• La ley también puede disuadir a los medios de comunicación de criticar al gobierno, dada la posibilidad de que se apliquen medidas punitivas.
• Se prevé que la incertidumbre normativa y el entorno restrictivo que crea la ley tengan un efecto paralizante sobre la sociedad civil y desalienten a los donantes internacionales a participar en Paraguay.