The Prime Minister said the current law requiring some non-profit groups to disclose the funding they receive from foreign governments was not strong enough, Haaretz reported.
Mr Netanyahu said he had managed to stop funding from the Norwegian government, an apparent reference to Norway’s decision to withdraw funds from a Palestinian women’s organisation named after Dalal Mughrabi, who was part of the 1978 Coastal Road massacre that killed 38 civilians, including 13 children.
He said the move was part of “Israel’s decisive foreign policy.”
The current law, which requires Israeli organisations receiving a majority of their financial support from overseas governments to disclose their funding, mainly targets human rights groups.
There are only 27 Israeli organisations that receive more than half of their funding from foreign governments, according to the Justice Ministry.
Of those, 25 are human rights organisations.
The Israeli–Palestinian conflict intensifies
The Israeli–Palestinian conflict intensifies
Medics evacuate a wounded man from the scene of an attack in Jerusalem. A Palestinian rammed a vehicle into a bus stop then got out and started stabbing people before he was shot dead
Israeli ZAKA emergency response members carry the body of an Israeli at the scene of a shooting attack in Jerusalem. A pair of Palestinian men boarded a bus in Jerusalem and began shooting and stabbing passengers, while another assailant rammed a car into a bus station before stabbing bystanders, in near-simultaneous attacks that escalated a month long wave of violence
Palestinians throw molotov cocktail during clashes with Israeli troops near Ramallah, West Bank. Recent days have seen a series of stabbing attacks in Israel and the West Bank that have wounded several Israelis
Women cry during the funeral of Palestinian teenager Ahmad Sharaka, 13, who was shot dead by Israeli forces during clashes at a checkpoint near Ramallah, at the family house in the Palestinian West Bank refugee camp of Jalazoun, Ramallah
A wounded Palestinian boy and his father hold hands at a hospital after their house was brought down by an Israeli air strike in Gaza
Palestinians look on after a protester is shot by Israelis soldiers during clashes at the Howara checkpoint near the West Bank city of Nablus
A lawyer wearing his official robes kicks a tear gas canister back toward Israeli soldiers during a demonstration by scores of Palestinian lawyers called for by the Palestinian Bar Association in solidarity with protesters at the Al-Aqsa mosque compound in Jerusalem's Old City, near Ramallah, West Bank
Undercover Israeli soldiers detain a Palestinian in Ramallah
Palestinian youth burn tyres during clashes with Israeli soldiers close to the Jewish settlement of Bet El, in the West Bank city of Ramallah, after Israel barred Palestinians from Jerusalem's Old City as tensions mounted following attacks that killed two Israelis and wounded a child
It comes after Mr Netanyahu called for the dismantling of a UN agency that aids millions of refugees, which he accused of anti-Israeli incitement.
He accused the United Nations Relief and Works Agency (UNRWA) of perpetuating, rather than solving, the Palestinian refugee problem and said anti-Israeli incitement was rife in its institutions, which includes schools.
“It is time UNRWA be dismantled and merged with the United Nations High Commissioner for Refugees,” Mr Netanyahu said.
Ben Jamal, director of the Palestine Solidarity Campaign, said: “There is only one reason that the UNRWA provides crucial humanitarian support to 5 million Palestinian refugees – the continuing illegal occupation of Palestinian land by the Israeli military and state and the denial of the right of return.
“Netanyahu’s notion that the UNRWA ‘perpetuates’ Palestine’s refugee problem suggests a break with reality. Netanyahu’s defence minister Avigdor Lieberman said that disloyal Palestinian citizens of Israel should be beheaded, and his justice minster Ayelet Shaked described Palestinian children as ‘little snakes’. Let’s take his complaints about incitement with a pinch of salt.”
UNRWA was established by the UN General Assembly in 1949 after hundreds of thousands of Palestinians fled or were expelled from their homes in the 1948 war that followed Israel’s creation.
It says it currently aids five million registered Palestinian refugees in the Middle East.
Additional reporting by ReutersReuse content