Last week, the Canadian government released its 2025 report on money laundering and terrorist financing risks. The report highlighted how Hezbollah continues to exploit Canada’s financial system and criminal networks. According to the findings, the group uses both illegal and legal channels to raise money for its operations in Lebanon.
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One key method involves Canada’s charitable and non-profit sectors, as well as trade-based money laundering. However, the most alarming detail is Hezbollah’s use of the automobile trade. The report stated that Hezbollah uses the Port of Montreal in Quebec as a hub to ship luxury vehicles overseas to Lebanon, which financially supports the group.
This link is not new. More than a decade ago, U.S. law enforcement revealed Hezbollah’s connection to the global used car trade. Investigations showed that buyers in the United States purchased cars, shipped them to West Africa, and funneled them into a complex money-laundering system. Couriers, smugglers, and hawalas then moved the proceeds from these sales, eventually delivering the money to Hezbollah in Lebanon.
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Hezbollah Links to Canada
Hezbollah’s presence in Canada goes back decades. Intelligence reports from the early 2000s showed that the group used Canada as a base for raising funds, laundering money, and buying equipment. In 2002, documents from the Canadian Security Intelligence Service (CSIS) revealed that Hezbollah agents in Vancouver and Montreal were given “shopping lists” from Lebanon. These agents purchased supplies, forged documents, and even stole luxury cars to send back to the Middle East.
Canadian banks were also used as part of these operations. Hezbollah-linked networks moved large sums of money through institutions such as the Bank of Nova Scotia. In some cases, life insurance policies were taken out on Hezbollah fighters, with payouts later sent to Lebanon.
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Because of these activities, Canada officially banned Hezbollah in 2002. Despite this, the group continued operating through underground networks. In 2011, Canadian media reported on possible Hezbollah involvement in an extortion racket, where Lebanese expatriates were pressured to buy vehicles that were later shipped overseas.
One key financial channel tied to Hezbollah was the now-defunct Lebanese Canadian Bank (LCB). This bank maintained almost 200 accounts suspected of Hezbollah links, including those of the Yousser Company and the Martyr Foundation. LCB even had an office in Montreal, highlighting how deep Hezbollah’s ties in Canada ran.
Hezbollah and Canada’s Car Theft Crisis
Hezbollah’s reliance on car theft and smuggling has only grown in importance. The group is currently facing a financial crisis due to its costly conflict with Israel. With much of its funding sources damaged or reduced, Hezbollah is leaning heavily on overseas criminal networks, including those in Canada.
Canada itself is struggling with rising levels of car theft. According to INTERPOL, the country ranks among the top 10 globally for stolen vehicles. Many of these stolen cars are shipped overseas, with destinations including West Africa, Italy, and Lebanon.
Statistics show alarming increases in theft. In Quebec, auto thefts rose by more than 55 percent between 2013 and 2023. Ontario saw a 48 percent increase during the same period. The Insurance Bureau of Canada has described this as a “national crisis.” The Port of Montreal remains the primary exit point for these stolen vehicles, with Beirut listed as one of the key destinations.
Recent law enforcement operations underscore the scale of the problem. In 2024, Canadian authorities conducted “Operation Vector,” recovering nearly 600 vehicles worth $34.5 million. These vehicles went to foreign markets, including the Middle East. The year before, authorities seized over 1,000 vehicles before criminals could ship them out. In one 2023 case alone, authorities recovered 53 vehicles valued at $2.6 million from shipping containers.
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Experts warn that organized crime groups employ sophisticated tactics to smuggle cars. Criminals use stolen identities to lease or purchase vehicles, then drive them straight into shipping containers bound for overseas markets. Hezbollah, while not the only player in this trade, taps into this stream of illicit profits. Even a small share of the money generated gives Hezbollah valuable resources during its current financial difficulties.
Through these schemes, Hezbollah exploits Canada’s strong economy, open financial system, and its role as a hub for international trade. Despite Canada banning the group, Hezbollah networks remain active, using criminal enterprises such as car theft and smuggling to sustain their activities abroad.