Center for a Secure Free Society Global Dispatch Checking Iran’s Gambit A Review of Canada’s Policy Toward the Islamic Republic by Candice Malcolm GlobalIssue Dispatch4 • May 2017 page 1 May 2017 ran’s Intelligence Minister Mahmoud Alavi to weaken Iran’s efforts in Canada and recently confirmed what security scholars abroad. Ihave long known – that Iranian agents are This Dispatch provides an overview covertly working to advance the Islamic of Iran’s activities in Canada, including Republic of Iran’s agenda in the West. A those of its proxy group Hezbollah, that March 2017 television interview shows Alavi led to Canada’s firm response in 2012. boasting about Iran’s network of lobbyists In detailing the steps taken by the Harper and spies in Washington D.C., London, government to halt Iran’s efforts inside England and Canada.1 Alavi claims there Canada, while also working to undermine is a powerful “lobby group”—described Iran’s ability to raise funds and bankroll global terrorist groups around the world, as dual citizens in the United States, this paper provides an important case Canada and the United Kingdom—who study for dealing with Iran. Under Liberal remain loyal to the Islamic Republic and Prime Minister Justin Trudeau, elected in clandestinely work to promote the regime’s 2015, Canada’s position towards Iran has agenda. Likewise, Iran’s Defense Minister shifted and has since fallen in line with Hossein Dehghan recently discussed his other Western nations in lifting sanctions, strategy for dealing with Iran’s “enemies”— re-opening diplomatic channels, and stated as the U.S. and Israel—during a engaging in appeasement towards the February 2017 interview with Iran’s state regime in Tehran. Without a well-founded 2 broadcaster. According to Dehghan, Iran position against Iran, Canada could once wants to be able “to surprise the enemy… again be vulnerable to Iran’s subversive (and) hit the enemy where it hurts the agenda. This paper will conclude with a most,” claiming, “there will be a situation of policy framework and recommendations asymmetric warfare.”3 for the Trump administration on how best These threats must be taken to deal with the threat posed by the Islamic seriously by policymakers in Washington. Republic of Iran. And in crafting a comprehensive strategy to counter Iran’s belligerence, policymakers can look to Canada for an example of how former Prime Minister Stephen Harper’s Conservative government took swift and Iran’s covert activities in Canada decisive action to stop Iran’s subversive agenda. Canada, much like the United ran’s historic activities in Canada States, has long been a target of Iran’s Ihave centered around its proxy group, covert foreign operations; Iran has a well- Hezbollah. For much of the past three documented history of using Canada as decades, Canada has been an important a launching pad for its global fundraising source of financing for the Iranian-backed and money-laundering operations, and Lebanese Shi’ite militia. has been caught openly calling for The case of Mohammad Hassan the infiltration of Canada’s governing Dbouk shined a light on the organization’s institutions and civil society. In 2012, in stronghold in Canada. After arriving in response to ongoing concerns about Iran’s Vancouver and seeking refugee status in activities inside Canada, alongside Iran’s Canada in 1998, Dbouk established a major increasingly aggressive activities on the fundraising and procurement network in world stage, Canada’s Government closed Canada under the command of Haj Hassan Iran’s embassy in Ottawa, expelled Iranian Hilu Laqis, then-chief military procurement diplomats, cut diplomatic ties with Tehran officer of Hezbollah.4 Dbouk manipulated and took a series of policy measures Canadian insurance agencies to obtain life Global Dispatch page 2 May 2017 insurance policies for Hezbollah militants Apart from Hezbollah, the Iranian and raised funds through credit card regime had its own direct reach into Canada and banking scams, as well as cigarette vis-à-vis its embassy in Ottawa. Prior to smuggling rings – the proceeds of which the 2012 closing of the Iranian Embassy were sent to purchase high-tech military in Ottawa, sources believe that the Islamic supplies used in Lebanon. Dbouk became an important asset for Hezbollah, and was rejected five An Iranian diplomat urged times for suicide missions because he individuals from Iran was considered too valuable in Canada.5 to “occupy high level Canadian and American law enforcement positions” in government and intelligence services began monitoring and society and to “resist Dbouk’s activities, and worked together to melting into the dominant have him indicted by a U.S. federal court Canadian culture.” in 2001.6 According to U.S. investigators, Dbouk was an Iranian-trained “intelligence specialist and propagandist (who) was Republic was using its embassy to build a dispatched to Canada by Hezbollah for the network of sympathizers and allies. Among express purpose of obtaining surveillance its activities, for instance, the Islamic and military equipment.” Dbouk is believed Republic’s embassy worked with the local to have fled to Lebanon to avoid his public school board in Ottawa to develop indictment, although the case against his courses on Iranian culture and language.12 cell was successfully litigated in North Targeting second-generation Canadian Carolina.7 children of Iranian origin, one course used In 2002, Hezbollah was listed as a textbooks that included Islamic Republic banned terrorist entity in Canada, following propaganda and images that glorified child a federal court case brought forward by soldiers, suicide bombers and martyrdom, Jewish organization B’nai Brith, however, its as well as prominent and complementary subversive reach into Canada continues.8 photographs of Ayatollah Khomeini.13 Other In 2011, the U.S. Treasury Department course material included a cartoon with identified the Lebanese Canadian Bank racist overtones depicting dark-skinned (LCB),9 along with its subsidiaries, as a Israeli soldiers with large noses menacing a “financial institution of primary money light-skinned Palestinian child.14 laundering concern under Section 311 of The Canadian government also had the USA PATRIOT Act for the bank’s role reason to believe that the Iranian embassy in facilitating money laundering activities was being used as a headquarters for for an international narcotics trafficking and espionage and subversive activities within money laundering network.”10 Canada. These concerns reached a tipping point when Iran’s cultural attaché in Ottawa The U.S. Treasury alleged that this bank’s made troubling statements in a message network had been facilitating the movement to Canadians of Iranian decent. In a Farsi- of illicit funds and narcotics from Latin language statement, Hamid Mohammadi America to Europe via the Middle East, urged individuals from Iran to “occupy high- laundering hundreds of millions of dollars level key positions” in government and monthly. This was allegedly done through society, and to “resist being melted into the bank accounts and other assets, including 15 American car dealerships. Hezbollah dominant Canadian culture.” It is against was accused of deriving direct “financial this backdrop that Canada’s policy towards support from the criminal activities of [this] Iran changed. network.11 Global Dispatch page 3 May 2017 The Harper Doctrine: A Case Study decided to recall most of its diplomatic 19 tephen Harper was first elected Prime staff. Minister with a minority government Within a few Sin 2006. Within days of assuming office, months, relations sources say the Harper government began between the two negotiating with European countries to order countries worsened, arrest warrants for various members of the and, in September 2012, Canada called Iranian regime. In June 2006, according back its 10 remaining to a senior source inside the Canadian embassy staff from government who worked closely on this Stephen Harper, former Prime Minster of Canada Tehran, citing safety file at the time, Harper urged his German concerns and what counterparts to charge Iran’s chief prosecutor was considered a “blatant disregard” with war crimes for the death of Canadian for the Vienna Convention – an agreement photojournalist Zahra Kazemi, who was guaranteeing the safety of diplomatic raped, tortured and killed while being held personnel. Meanwhile, on September 7, in the Evin Prison in Iran. Germany had 2012, Canada declared Iranian diplomats agreed to arrest Iran’s chief prosecutor and ‘persona non-grata’ in Canada, and posted extradite him to Canada to face charges. a notice on the Iranian embassy door He was tipped off, however, and changed ordering all Iranian officials to leave Canada his travel plans at the last minute to avoid within 5 days. At the time, Minister Baird travelling through Germany. said, “Canada views the government of In November 2006—seemingly as Iran as the most significant threat to global retribution and retaliation—Iran’s Foreign peace and security in the world today.”20 Minister filed an official complaint against Alongside expelling Iranian officials Canada with the United Nations, claiming from Canada and severing diplomatic that Canada was violating the human rights relations, the Harper government also of its first nations’ communities.16 Again, declared the Islamic Republic of Iran as a in seeming retaliation, one month later in state-sponsor of terrorism. The Government December 2006, Iran’s Foreign Minister of Canada stated that “Iran sheltered and accused the Canadian embassy in Tehran provided material support to violent non- of being “a den of spies” for the United state actors that engaged in terrorism.”21 States.17 The Islamic Revolutionary Guard Corps’ In 2010, after mounting concerns with elite paramilitary wing, the Qods Force, was the Lebanese-Canadian Bank were coming listed as a terrorist entity under the Canadian to the surface, the Harper government began Criminal Code.22 Canada acknowledged banning banks from dealing with Iranian firms Iran’s association with other recognized and businesses.