We, the Alianza Regional por la Libertad de Expresión e Información, IFEX-ALC, and Voces del Sur, as networks that defend and promote freedom of expression in Latin America and the Caribbean, voice our deep concern over the draft “Organic Law for the Control of Irregular Capital Flows” introduced by Ecuadorian President Daniel Noboa in the National Assembly, where it is currently under consideration, and we urge lawmakers to vote against this initiative.
While presented as a measure for combating money laundering activities, the bill imposes excessive and punitive controls on foundations and non-profit organizations, regardless of their size or nature, thus seriously affecting community-based and human rights advocacy organizations.
Our mains concerns are summarized as follows:
● The proposed law focuses on control and penalization, with no risk assessment, and was drafted without having consulted civil society;
● It imposes financial and administrative obligations typical of the banking system and which cannot be feasibly met by small organizations;
● It stigmatizes the work of civil society organizations by suggesting, without evidence, connections to criminal activities or involvement in actions to “destabilize” the country;
● The bill’s provisions are vague, giving the authorities wide discretion in enforcing them. For example, in the case of the information that organizations will be required to disclose, this could mean compromising sensitive data of vulnerable individuals supported by the organizations;
● It undermines the right to freedom of association, protected under the Ecuadorian Constitution and Article 16 of the American Convention on Human Rights, by stipulating disproportionate penalties, such as dissolution if an organization fails to comply with administrative requirements.
This draft legislation is part of an alarming regional trend of restriction of the civic space. Several Latin American governments have furthered regulations that impose disproportionate administrative and financial requirements on civil society organizations, thus hindering access to funding, in addition to granting state bodies broad controlling powers. These measures, far from promoting transparency, have been used as instruments of censorship and repression. Some examples of this trend are the laws passed in Nicaragua, Venezuela, Paraguay, and, most recently, Peru and El Salvador. In this context, the bill currently under discussion in Ecuador joins a dangerous regional tendency that must be addressed urgently.
The undersigned networks urge the National Assembly of Ecuador to vote against this bill. The process for passing a law of this nature must be preceded by a broad, participatory, and transparent debate, in which all the voices of civil society are heard and legal provisions are aligned with international standards, including the recommendations of the Financial Action Task Force (FATF), which emphasize the need for a risk-based approach, not one based on sweeping suspicions.
We call on the international community and the bodies of the inter-American system and the United Nations, as well as on the governments of the region, to speak out against this seriously regressive measure.
Ecuador’s civil society is a cornerstone of democracy. Any legislation that regulates its activities must seek to strengthen it, not weaken it.
Signatures:
Alianza Regional por la Libertad de Expresión e Información
IFEX-ALC
Voces del Sur