OTTAWA: Hamas and Hezbollah are "well-established and resourceful organisations" that fall under the 'Politically Motivated Violent Extremism' (PMVE) category and sustain their activities through diverse funding channels, according to a report by the Canadian government.
The National Risk Assessment report by the Canadian government defines PMVE as the encouragement of violence to create new political systems or alter existing structures and norms.
While it may include religious aspects, the core focus of actors under this category is political self-determination or representation rather than ethnic or racial supremacy.
"Hamas and Hezbollah are established and well-resourced groups that fall under the PMVE category. These groups use diverse funding methods to sustain their operations, including the abuse of the MSB and banking sectors; use of cryptocurrencies; state financing; abuse of the charitable and NPO sector; and criminal activity, " the report stated.
Canadian authorities observed that several terrorist entities listed under the Criminal Code -- including Hamas, Hezbollah, and Khalistani extremist outfits Babbar Khalsa International and the International Sikh Youth Federation -- have historically relied on financial support from Canada.
The report noted that although once supported by an extensive fundraising network, these groups now operate with smaller clusters of individuals aligned with their causes, without formal organisational ties.
"Both Hamas and Hezbollah are known to use MSBs, especially IVTS, such as hawalas, to move money across borders. Hezbollah, in particular, is known to use Lebanon's banking sector to maintain their account holdings, " the report said.
Citing the lawsuit Lelchook v. Societe Generale de Banque au Liban SAL in a New York court, the document highlighted how a now-defunct Lebanese bank provided Hezbollah with financial services, including correspondent banking links in the US.
"Canada's financial sector may also be exposed to risks emanating from correspondent banking relationships with institutions known or suspected of servicing Hezbollah in Lebanon, " it warned.
Cryptocurrencies have also emerged as a tool for these organisations, though contributions remain relatively low in value, according to the report.
"Both Hamas and Hezbollah use online platforms and social media to solicit donations in the form of cryptocurrencies. Hamas in particular has been an early adapter of cryptocurrencies to raise and move funds, with the group reportedly first beginning to solicit Bitcoin donations in 2019, " it noted.