WASHINGTON — Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

A 15-page report congressional report, obtained by FOX News, includes intelligence from law enforcement as well as New York State’s Department of Taxation and Finance.

The report reads in part: Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

“This is a very serious homeland security issue, one that has gone unnoticed for far too long,” said Rep. Peter King, (R-N.Y.), the ranking member of the House Homeland Security Committee, who called for the investigation.

“Cigarette smugglers are able to generate millions of dollars in illegal profits with a great deal of this wealth being sent to terrorist groups overseas – groups that would like nothing more than to inflict devastating harm on our country and its citizens.”

One of the key issues, according to the report, is a potential flaw in New York State policy. According to King’s office, there is a policy in the state of “forebearance,” or refusing to collect on sales of Native American tax-free cigarettes to non-Native Americans.

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