The Immigration and Refugee Board Member Alicia Seifert was quoted by Canada's public broadcaster as saying Gary Peters was "complicit in war crimes."
Ms Seifert pointed to Peters' role in an alleged scheme to sneak Saadi Gaddafi and his family into Mexico with false documents at the height of pro-democracy protests in Libya in 2011.
A Canadian woman, along with a Danish citizen and two Mexicans, were charged by Mexican authorities last January with attempted trafficking of undocumented people, organised crime and falsifying official documents in the case.
Peters admitted to the Canadian Broadcasting Corporation that he continued to work for Saadi Gaddafi after the United Nations imposed sanctions against the Libyan regime in 2011, but insists he was careful not to break any laws.
He has 15 days to seek a judicial review of the Immigration and Refugee Board decision or ask Canada's immigration minister to quash the order on humanitarian grounds because he has a Canadian wife and children.
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