Jaysh al-Muhajirin wal-Ansar, which operates mainly in the Aleppo area, aims to oust Bashar al-Assad's government.
Any person or group on Canada's terrorist list may have their assets seized, and there are criminal penalties for assisting listed entities with the aim of helping them carry out extremist activities.
Public Safety Canada says the group, led by Chechens from Russia's North Caucasus, consists of approximately 1,000 fighters, most of them foreign.
The department says the group has taken part in joint operations with other jihadist factions in Syria such as the Islamic State of Iraq and the Levant and Jabhat al-Nusra.
Its tactics include use of improvised explosive devices, ground assaults, hostage-taking and kidnapping.
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