Canada has validated India’s claims regarding the funding of organizations linked to Khalistani terrorists, marking a significant development. A recent report released by the Canadian government on terrorism financing has confirmed that at least two Khalistani extremist groups are receiving financial aid from within the country. The report, entitled “2025 Assessment of Money Laundering and Terrorist Financing Risk in Canada,” identifies Babbar Khalsa International and International Sikh Youth Federation as the beneficiaries of this financial support originating from Canada.
Prior to this, intelligence reports from Ottawa highlighted that the emergence of politically motivated violent extremism within Canada was linked to the efforts of Khalistani extremists seeking to create an independent Khalistan in India’s Punjab through the use of violence.
The updated Canadian government report, published subsequent to the initial assessment, states that politically motivated violent extremism promotes the use of violence to establish new political frameworks or to modify existing ones. The report also points out that while religious aspects may be present, the primary drivers of this extremism relate to political self-determination and representation, rather than racial or ethnic dominance.
According to the report, several terrorist organizations that are listed under Canada’s Criminal Code and are involved in politically motivated violent extremism, such as Hamas, Hezbollah, and the Khalistani extremist groups Babbar Khalsa International and International Sikh Youth Federation, are receiving financial support from within Canada.
In 2022, a report by the Financial Transactions and Report Analysis Centre of Canada had previously identified Hezbollah as the second most frequently cited international terrorist organization receiving funding from Canada. The 2025 report provides a detailed look into the methods used to finance politically motivated violent extremism, highlighting that Hamas and Hezbollah are well-established and well-resourced entities that fall into this category.
The report outlines the diverse methods used by these groups to sustain their operations, including the exploitation of banking systems, the use of cryptocurrencies, governmental funding, the misuse of charitable and non-profit organizations, and involvement in criminal activities.
The report also indicates that Khalistani extremist groups, which support violent tactics to establish an independent region in India’s Punjab, are suspected of raising funds within Canada and in other countries. These groups previously operated a fundraising network in Canada; however, the current setup appears to comprise small groups of individuals who are dedicated to the cause but lack specific affiliations with any particular organization.
The misuse of non-profit and charitable activities is a key concern regarding the groups mentioned. This report seems to validate New Delhi’s assertion that pro-Khalistan elements in Canada are freely conducting anti-India activities.
