Khalistani Groups Receiving Support from Canada, Says New Report

A new report from the Canadian Department of Finance has revealed that several terrorist entities, including Khalistani extremist groups, continue to receive financial support from Canada to fund politically motivated violence.

The 2025 Assessment of Money Laundering and Terrorist Financing Risks identifies groups such as Babbar Khalsa International and the International Sikh Youth Federation under the category of Politically Motivated Violent Extremism (PMVE).

The assessment notes that these groups exploit funding networks, including non-profit and charitable organizations, to further their objectives. PMVE is defined in the report as “the use of violence to establish new political systems or structures within existing systems.” Other PMVE-designated groups include Hamas and Hezbollah.

The report highlights that while such extremism may have religious elements, it is primarily driven by political self-determination rather than ethnic or racial supremacy. Khalistani extremist groups, particularly those advocating a separate state in Punjab, are suspected of raising funds through multiple channels, including donations from diaspora communities and non-profit organizations.

Canada’s financial intelligence agency, FINTRAC, has previously identified Hezbollah as the second most frequently funded international terrorist group from Canadian sources. The 2025 report elaborates on similar financing methods, noting that while revenue from non-profits is relatively small compared to overall budgets, it remains a significant concern.

Canada’s intelligence agency, the Canadian Security Intelligence Service (CSIS), also confirmed that Khalistani extremists are using Canadian soil to promote, fundraise, and plan violence primarily in India. CSIS reports that Canada-based Khalistani extremists have posed a threat since the mid-1980s, aiming to create an independent Khalistan largely within Punjab.

The report underlined long-standing Indian concerns about extremist activities in Canada, stating that the country has effectively become a safe haven for anti-India elements. It calls for sustained vigilance against external influence campaigns and domestic extremist financing networks.

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