Doesn't seem to. It just makes them not run public campaigns in your nations if you're in a NAP with them.

I tried it in a save as Initiative and I made a NAP with every faction, intel sharing with two, and agents in two ( so I had pretty good visibility); and I took the USA and China. Not a single public campaign run in either country. Turned it off in the mod manager and the next turn I had two councilors running public campaigns in the US and one in China. Turned it back on, next turn no public campaigns. Broke NAP with the Servants the next turn (who had run a campaign in the US) and the turn after that they were running it again.

Cant wait to try, has any issue risen yet ? does it break something ?