Overview

• President Daniel Noboa formally submitted the 'Ley de Fundaciones' to the National Assembly on July 29 despite his party’s lack of a legislative majority.
• The draft law designates the Superintendencia de Economía Popular y Solidaria as the regulator empowered to monitor, intervene in and control domestic and foreign nonprofit entities.
• It mandates audited financial disclosures by nonprofit groups and empowers the Unidad de Análisis Financiero y Económico to scrutinize capital inflows to combat money laundering and illegal mining.
• Human rights advocates warn the bill mirrors foreign agent–style laws in El Salvador and Nicaragua that have been criticized for stifling independent civil society.
• This proposal marks Noboa’s fourth urgent economic initiative since May, following three approved bills and a recent government restructuring that reduced ministries and dismissed 5,000 officials.