Khalistani terror groups operate, raise funds, Canada govt admits

A Canadian government report has acknowledged that Khalistani extremist organisations continue to operate and raise funds within Canada, confirming India’s long-held concerns about pro-Khalistani elements using Canadian soil to fuel anti-India activities. The Canada’s Department of Finance has, for the first time, officially acknowledged that Khalistani extremist groups are operating in the country and receiving financial support. The report on the "most pressing money laundering and terrorist financing threats and vulnerabilities in Canada", classified the Khalistanis as terrorist groups that encourage the use of violence to pursue political objectives or self-determination.

The report, titled 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, specifically identified two groups – Babbar Khalsa International and the International Sikh Youth Federation – as recipients of funds originating in Canada. "Several terrorist entities listed under the Criminal Code in Canada that fall under the PMVE (politically motivated violent extremism) category, such as Hamas, Hezbollah, and the Khalistani violent extremist groups Babbar Khalsa International and the International Sikh Youth Federation, have been observed by law enforcement and intelligence agencies to receive financial support originating from Canada," the report said.The assessment explains how these groups find money to fund their operations. Hamas and Hezbollah, for instance, “use diverse funding methods to sustain their operations, including the abuse of the money services businesses (MSB) and banking sectors; use of cryptocurrencies; state financing; abuse of the charitable and non-profit organisations (NPO) sector; and criminal activity.”

The “2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada” report confirms that Khalistani violent extremist groups, including Babbar Khalsa International and the International Sikh Youth Federation, have received financial support originating from Canada.… pic.twitter.com/shw876tbyb

— Press Trust of India (@PTI_News) September 6, 2025

For Khalistani outfits, the report reveals that diaspora communities are a key target. “Khalistani violent extremist groups have also been known to use networks to solicit donations from diaspora communities to raise and move funds, including through NPOs,” it said.“Khalistani extremist groups supporting violent means to establish an independent state within Punjab, India, are suspected of raising funds in a number of countries, including Canada,” the assessment states. The new findings follow a June 18, 2024 report by the Canadian Security Intelligence Service (CSIS), which warned that since the 1980s, “the PMVE threat in Canada has manifested primarily through Canada-based Khalistani extremists seeking to use and support violent means to create an independent nation state called Khalistan, largely within Punjab, India.”