Three Montreal-area daycares were raided on Wednesday. (CBC) Hundreds of police officers have raided locations in the Montreal region and Ontario — including at least three daycares — as part of a major crackdown on international fraud.

Officials said the raids were part of Operation Pre-Empt, the largest counterfeit document bust in Canadian history.

The RCMP said at least 400 officers fanned out in Montreal, Laval, Longueuil and Toronto at 6 a.m. Wednesday to execute 39 search warrants.

Police made 29 arrests and were still seeking three other suspects who were allegedly part of a ring that produced fake identification, including passports, driver's licences and credit cards, the RCMP said at a news conference in Montreal.

Most were arrested in the Greater Montreal region, while five were arrested in Toronto.

Police said they dismantled two counterfeiting labs — including one in a daycare.

The investigation, which began in 2006, was led by the Integrated National Security Enforcement Teams, including members of the RCMP, Quebec provincial police and Montreal police, as well as CSIS and the Canada Border Services Agency.

So far, investigators have been unable to link the group to any known terrorist organization, said RCMP Sgt. Luc Bessette.

"We thoroughly investigated every person to make sure those people were not a threat to Canadians or people outside of Canada," Bessette said. "From the evidence that was collected today we will keep on studying those links."

No weapons were seized during the raids, he said.

But, Bessette said the investigation is still ongoing, and more arrests are likely.

Daycares raided

At least three Montreal daycares — two government-subsidized centres and one institutional daycare — were raided because police believed they housed "a lab involved in the production of false documents," said Bessette. "I can assure you that the safety of children was never compromised."

"We believe that the forgers were using that place during hours that kids were not there," Bessette said.

Montreal police officers were on hand at the Bébé Lilly centre at Rivière-des-Prairies to greet parents dropping their children off for the day.

"Their world was a bit topsy-turvy this morning, but we are telling them that the raids have nothing to do directly with the daycares, and at no time was their children's safety compromised," Montreal police spokesman Ian Lafrenière told French news network LCN.

Still, the news was a shock to Ralph Paris, who was dropping off his 18-month old at the school.

“Especially when there is children involved – it is ridiculous,” Paris said.RCMP Sgt. Luc Bessette says the investigation is still ongoing. (CBC)

The ring operated in several countries outside Canada, and Wednesday's raids "have rendered it inoperable," said Bessette.

He said it was clear the business was a lucrative one, and the criminal group was sophisticated.

"Not [just] anyone … can produce passports that will go through customs," Bessette said. "Each and every individual had a specialized expertise…. This passport had to go from hand to hand, to specialist to specialist. I don't think the passports were reproduced in very large quantities."

Bessette would not comment on whether any of the suspects were employees of the federal government.

Passports valuable commodity

Former CSIS strategist David Harris said the Canadian passport is a very valuable document abroad.

“It is almost, a matter... without flippancy, of who is not looking for Canadian passports,” said Harris. “We have foreign intelligence services who are always interested in gaining access to Canada or facilitating their ability to move between other unrelated borders using a Canadian passport.”

"This is really quite a challenge worldwide. Criminals — especially those involved in transnational organized crime … can always use a Canadian passport, especially one that is highly credible."

Harris said officials left the door open to the possibility links could eventually be found between this group and terrorist organizations.

“We have to remember… that Canada has already had some experience with Islamic extremist organizations,” Harris said. “Montreal is considered an international hub of north African Islamic extremism.”

Bessette could not say whether those arrested were Canadian citizens.

The suspects face charges including:

• Commission of an offence for a criminal organization
• Document, credit card and passport forgery
• Credit card theft
• Possession of equipment used to commit forgery
• Making and uttering false documents
• Fraud
• Conspiracy
• Forgery of or uttering a forged passport.

The three wanted men are Ali Ballout, 29, left, Adel Haddad, 49, centre, and Bali Meta, 42. (RCMP/CBC)