A new report from the Department of Finance warns that Canada continues to be a significant hub for terrorist financing. Extremist groups are exploiting various avenues, including charitable fraud, drug trafficking, and auto theft. The report specifically identifies the Lebanese terrorist group Hezbollah as a major beneficiary of funds originating from Canada, particularly through the black market vehicle trade.

The 126-page report, titled "Assessment of Money Laundering and Terrorist Financing Risks in Canada," states, "The Port of Montréal is a known link where luxury vehicles are shipped to Lebanon, financially supporting Hezbollah." While the overall amount of terrorist financing from Canada is considered low compared to conventional money laundering, the report emphasizes the potential consequences of such financing. It warns that the impact of a single terrorist act can be disproportionately severe.

"While the volume of terrorist financing in Canada is assessed to be low, the consequences of enabling deadly and destructive terrorist attacks in Canada and abroad are grave," the report notes.

In addition to Hezbollah, the report mentions that funds from Canada have also reached the Palestinian group Hamas and extremist Sikh organizations, including Babbar Khalsa International and the International Sikh Youth Federation. These groups have been observed receiving financial support from Canada, according to law enforcement and intelligence agencies.

The report outlines various sources of this funding, including crowdfunding, cryptocurrencies, and the misuse of non-profit organizations. It highlights the exploitation of charitable sectors by groups like Hamas and Hezbollah. For instance, Khalilullah Yousuf, a Toronto resident, was sentenced to 12 years in prison for organizing GoFundMe campaigns that falsely claimed to raise money for humanitarian efforts in Gaza but were actually funneled to Islamic State affiliates.

In October, Canada designated the Vancouver-based anti-Israel group Samidoun as a terrorist entity. This decision was influenced by Samidoun's long history of promoting terrorist ideology and its role as a fundraiser for terror groups. The U.S. Department of the Treasury described Samidoun as a "sham charity" that diverted funds intended for humanitarian aid to support terrorist organizations.

The report also links Canada's lucrative illicit drug trade to terrorist financing. It states that Hezbollah is actively involved in the cocaine, heroin, fentanyl, and captagon trades, with trafficking networks extending through Latin America, Canada, and the U.S.

The Port of Montreal's role in shipping luxury cars is part of a broader issue. In 2022, auto theft rates in Canada reached record highs, with many stolen vehicles reportedly leaving the country through Montreal. David Adams, president and CEO of Global Automakers of Canada, questioned the seriousness of the situation, asking, "How serious, or how bad does this situation have to become before the authorities really do something about it?"

The report indicates that terrorist organizations using Canada for money laundering represent only a small fraction of a larger network, which is estimated by CSIS to involve between $45 billion and $113 billion annually. Additionally, it raises concerns about hostile state actors utilizing these money laundering networks to finance interference efforts within Canada. The report states, "Foreign states seeking to interfere in Canada often rely on networks of proxies within Canada to carry out their activities."

In other news, the federal government's economic development strategy is shifting focus to approving major projects, including mines and railways. This comes after a previous plan that involved significant corporate welfare payouts to foreign electric vehicle companies. Recently, Northvolt, one of the firms promised $30 billion in government support, declared bankruptcy, leading the Quebec government to suspend its funding deal and incur a $270 million loss.