TORONTO — Canadian immigration officials have accused a Toronto-area used car exporter of laundering money on behalf of Hezbollah, the Iranian-backed terrorist organization, allegations the man denies.According to reporting by Global News, heavily redacted court records describe Fahed Sowane, a Mississauga, Ont., resident, as a “danger to the security of Canada,” a finding that led to a ruling that he is inadmissible to remain in the country.Sowane, 57, is a Lebanese citizen who arrived in Canada on a work permit in 2016. Federal immigration officials allege he exported high-end vehicles, including Audi and BMW models, to the port of Beirut, which Canadian authorities say is controlled by Hezbollah..Immigration officials concluded the vehicle shipments amounted to “money laundering to benefit Hezbollah,” according to court documents. The Federal Court upheld that conclusion last week, ruling the decision was reached in a procedurally fair and reasonable manner.Court records state that the alleged scheme involved purchasing vehicles in Canada and exporting them to Lebanon, allowing money to move across borders outside the formal banking system. Authorities allege this method was used to circumvent financial controls designed to detect money laundering and terrorist financing.The Canada Border Services Agency did not respond to questions about the case. Sowane has denied any involvement with Hezbollah through his legal counsel..Hezbollah is listed as a terrorist organization under Canadian law. Public Safety Canada describes the group as a radical Shia organization backed by Iran and part of the Iranian-led “axis of resistance,” which includes Hamas and Yemen’s Houthi movement.Canadian authorities state that, in addition to Iranian support, Hezbollah relies on criminal activity to fund its operations, including drug trafficking and money laundering through international trade networks.A 2022 terrorist financing alert issued by the Financial Transactions and Reports Analysis Centre of Canada warned that Hezbollah frequently uses automotive transactions to move funds internationally. The alert stated that funds suspected of benefiting Hezbollah were often linked to vehicle sales and automotive businesses and were commonly transferred to Lebanon..Global says court documents indicate Sowane has worked in the auto trade for more than three decades, including in Lebanon and Belgium. He founded Black Swan Trading Inc. in Ontario in 2015 and later worked at Mississauga-based M&J Canada Inc., where his duties included exporting used vehicles and parts to overseas markets.The dealership did not respond to requests for comment. The Ontario Motor Vehicle Industry Council said Sowane was not a registered car dealer.In 2019, Ontario nominated Sowane for permanent residency through a provincial immigration program aimed at applicants with in-demand skills. While his application was under review, the Canadian Security Intelligence Service provided a security screening report to the Canada Border Services Agency in February 2024.Following that assessment, immigration officials ruled Sowane inadmissible on national security grounds. Officials stated he failed to provide requested documentation related to his vehicle exports, which they characterized as withholding information.Sowane disputed the allegations and argued that he opposed Hezbollah and had no involvement with the group. Immigration officials stated that ideological opposition does not preclude financial benefit.Sowane appealed the decision, but the Federal Court dismissed the challenge. In its Jan. 21 ruling, the court found the government’s decision to be reasonable and procedurally fair.
