A new report that says stolen cars from Canada and the U.S. are turning up in the hands of terrorists overseas is raising new questions about security at Canada's ports.
Tens of millions of dollars in stolen cars, head out of Canada's ports and overseas every year.
With one car stolen every three minutes in Canada, the cost for all Canadians who pay insurance premiums is more than a billion dollars.
"You've got twenty to thirty-thousand higher-end stolen vehicles leaving Canada every year and they are worth $50,000 each," Richard Dubin, vice-president of investigative services of the Insurance Bureau of Canada, told Â鶹ӰÊÓ.
But the insurance industry accuses the Canada Border Services Agency of not doing everything in its power to stop it.
"We've had situations where members of their operation have indicated that stolen vehicles are headed for example to the Port of Montreal, and even knowing that they let those stolen vehicles proceed out of the port," Dubin said.
The insurance industry has been arguing that stolen cars shipped out of the ports in containers should be searched by the Canada Border Service. But the agency told them they have no jurisdiction.
"When the Insurance Bureau brought them the cold hard facts, and offered them the information, they resisted it, and they're still resisting it to this day," said Dubin.
He added: "I don't think they want to do enforcement work."
There are also mounting concerns about where these cars are heading, according to a recent report in the Boston Globe.
A small number of cars swiped off American streets are sold overseas by criminal networks and end up in the hands of Iraqi insurgents, who are using them as car bombs, according to the FBI.
The FBI has declined to pinpoint how many stolen U.S. cars have been used as car bombs in Iraq but said the number is believed to be at least in the dozens.
In the United States alone, authorities estimate one million vehicles are stolen every year. But only about 35 per cent of them are ever found.
For several years now, the Canadian insurance industry says it warned the government about terrorists profiting from stolen cars.
"The one in particular is Hezbollah, which receives funding from it. It is literally a criminal activity that is used to fund terrorist activities," said Scott Newark, of the National Security Group.
The minister responsible for the Border Service, Stockwell Day, has been aware of the insurance industry's concerns for more than a year.
The minister has sent two separate letters to the Border Service asking what can be done to solve the problem. His office has told Â鶹ӰÊÓ he's expecting an answer quickly.
Meanwhile, the Border Service Agency and the RCMP are collaborating on a joint "working group" in an effort to tackle the issue, Day's office told Â鶹ӰÊÓ.
With a report from CTV's Graham Richardson