A Canadian government risk assessment has raised alarms over the financial networks sustaining Hamas and Hezbollah, warning that the two organisations are tapping into diverse funding channels ranging from cryptocurrencies to narcotics trafficking.
The report categorises both groups under "Politically Motivated Violent Extremism" (PMVE), noting their ability to adapt and survive through multiple revenue streams.
"Hamas and Hezbollah are established and well-resourced groups. 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 highlighted.
Investigators observed that while earlier these outfits benefited from wide fundraising networks, they now rely on smaller clusters of sympathisers, some operating from within Canada. Hezbollah, in particular, is flagged for leveraging Lebanon&rsquo;s banking sector and informal transfer systems like hawala.
Digital assets have emerged as a new frontier. Hamas is reported to have begun soliciting Bitcoin donations as early as 2019. &ldquo;Both Hamas and Hezbollah use online platforms and social media to solicit donations in the form of cryptocurrencies,&rdquo; the document noted, though it admitted the overall volumes remain relatively small.
A more significant stream, it said, comes from state sponsorship, especially Iran. Ottawa linked the financial flows to Iran&rsquo;s oil sales, sanction evasion mechanisms, and shell companies.
Drug trafficking was identified as a key income source, particularly for Hezbollah, which is tied to global networks moving cocaine, heroin, fentanyl, and captagon across Latin America, North America, and the Middle East. The group has also been implicated in trade-based money laundering, including the export of used cars through the Port of Montreal, a known hub for shipments to Lebanon.
The report underlined that while charitable and non-profit organisations remain vulnerable to exploitation, they account for a relatively small portion of operational funds.
By spotlighting these methods, Canadian authorities have warned financial institutions to tighten oversight of both formal and informal networks that could be exploited by terror outfits.

Crypto, Drugs Fund Hamas-Hezbollah: Canada

Canadian report warns terror groups use crypto, drugs, and Iran ties for financing

Crypto, Drugs Fund Hamas-Hezbollah: Canada

Canadian report warns terror groups use crypto, drugs, and Iran ties for financing

September 6, 2025 | 15:23 IST