March 1 (Bloomberg) -- Canada is a haven for the world's ``most notorious'' terrorist groups, according to a report by country's security agency, the National Post reported.

The 22-page report produced by the Canadian Security Intelligence Service in October says international terrorists are drawn to the country as a base for worldwide political and religious violence, the Toronto-based newspaper said.

The report suggests Canada's commitment two years ago to spend C$8 billion ($6 billion) of national security has failed to prevent terrorists from using Canada as a refuge and base to raise funds and procure materials, the Post said. The Post obtained the document through access-to-information laws.

The report is similar to one produced by the U.S. Library of Congress that said Canada's welfare system, immigration laws, infrequent prosecutions and light sentences have turned the country into a ``favored destination for terrorists,'' the newspaper said.

To contact the reporter on this story: Kevin Bell in Toronto at kbell2@bloomberg.net

Last Updated: March 1, 2004 08:02 EST