Canada’s banking watchdog today announced that they have added the World Tamil Movement (WTM) to its terrorist financing watch list, alerting all banks, credit unions and insurance companies operating in Canada to scour their client lists and immediately report any findings to authorities.

This move by the Office of the Superintendent of Financial Institutions came about two months after the Royal Canadian Mounted Police (RCMP) seeking court approval to seize the World Tamil Movement’s bank accounts. The WTM is considered the nation’s leading front group for the Liberation Tigers of Tamil Eelam (LTTE), which the Canadian government deems a terrorist organization.

The decision makes it illegal for Canadians here and abroad from knowingly participating in, contributing to or facilitating activities by the WTM. It also prohibits Canadians from assisting the organization financially.

The RCMP accused the WTM of orchestrating a complex extortion scheme that targets Tamil Canadians and forcing them to donate money to the LTTE.

The World Tamil Movement’s Toronto branch, however has staunchly denied that it raises funds for the LTTE or that it has any connection to terrorism.

In announcing the change, the Office of the Superintendent of Financial Institutions said the WTM is now subject to the Criminal Code. Both domestic and foreign financial institutions must comply with its directive and report their findings to regulator by July 15.

“Financial institutions review the lists of terrorist names to determine if they have any customer accounts in the names on the list,” said spokesperson Rod Giles. “If they do, they must freeze any assets held and report the details immediately to the RCMP, CSIS and FINTRAC.”

Canadian Security Intelligence Service or CSIS, is Canada’s spy agency. Financial Transactions and Reports Analysis Centre of Canada is the federal agency that tracks suspicious cash movements, including money laundering and terrorist financing.