Canadian Government Warns About Hamas and Hezbollah Funding Methods
Recent Canadian government reports reveal that groups like Hamas and Hezbollah are strong, well-organized, and resourceful. These organizations fall under the category of “Politically Motivated Violent Extremism” (PMVE), which means they promote violence to push for political change or self-determination.
According to the National Risk Assessment by Canada, PMVE groups mainly aim to change political systems or gain political power, rather than promoting racial or religious superiority. While they sometimes have religious motives, their main focus is political.
The report highlights that Hamas and Hezbollah use many tricky ways to fund their activities. They tap into different sources, including abusing financial institutions, cryptocurrencies, state support, charities, and even illegal activities like drug trafficking.
Canadian authorities pointed out that some terrorist groups, including Hamas and Hezbollah, have previously received money from Canada. Today, these groups don’t rely on large fundraising networks anymore. Instead, they have smaller groups or individuals supporting them, often working discreetly without formal organization ties.
The report notes that Hezbollah and Hamas often use informal banking systems like hawalas, which are traditional money transfer methods, to send money across borders. In Lebanon, Hezbollah also uses local banks to keep their funds safe and accessible. For example, a Lebanese bank once provided banking services to Hezbollah, even linking with US banks through a legal case.
Cryptocurrencies have become another tool for funding. Both Hamas and Hezbollah solicit donations online using social media and digital currencies like Bitcoin. Hamas has been particularly quick to adopt cryptocurrencies since 2019 to raise and move money. To cash out these digital assets, they use exchanges and informal transfer systems in countries like Lebanon, Turkey, and Syria. However, the full size and success of these crypto fundraising efforts are still unclear.
State sponsorship, especially from Iran, remains a major source of money for these groups. The US and Canadian authorities have observed Iran using techniques like selling oil and weapons, shell companies, and cryptocurrencies to avoid sanctions and fund their allies. Similar patterns have been seen supporting Hezbollah and Hamas.
The report also points out that charities and non-profit organizations are sometimes exploited to raise funds for these terrorist groups. But, overall, using charities as a revenue source only makes up a small part of their total budgets.
Criminal activities, mainly drug trafficking, play a big role in Hezbollah’s finances. The group is involved in illegal drug trade across Latin America, Canada, and the US, including cocaine, heroin, and synthetic drugs like fentanyl and Captagon. Hezbollah also uses money laundering, often through trade, such as buying used cars in North America and reselling them abroad—profits then go back to Lebanon.
A specific hub for this activity is the Port of Montreal, where luxury vehicles are shipped to Lebanon to support Hezbollah’s finances. US officials have documented this practice, showing how funds move through couriers and international markets.
Overall, the report shows how these organizations cleverly use multiple funding channels—including banking systems, cryptocurrencies, state support, charities, and illicit trade—to sustain their operations and influence global security.
