OTTAWA, Sept 6 – Several terrorist groups, including Khalistani extremist organisations, continue to receive financial backing from Canada to support politically motivated violence, according to a new report by the Canadian Department of Finance.
The 2025 Assessment of Money Laundering and Terrorist Financing Risks lists Babbar Khalsa International and the International Sikh Youth Federation as part of “Politically Motivated Violent Extremism (PMVE),” alongside Hamas and Hezbollah. The report warns that these groups exploit charities, non-profits, and diaspora donations to raise and move funds.
“Several terrorist entities listed under Canada’s Criminal Code, such as Hamas, Hezbollah, and Khalistani extremist groups, have been observed by law enforcement and intelligence agencies to receive financial support originating from Canada,” the report notes.
While Hamas and Hezbollah are described as well-resourced with access to banks, cryptocurrencies, state sponsors, and charities, Khalistani groups are suspected of tapping diaspora networks in similar ways. Misuse of the charitable and non-profit sector remains a “prominent method,” though it accounts for only a small share of overall terrorist budgets.
The findings follow warnings from Canada’s intelligence agency CSIS, which admitted earlier this year that Khalistani extremists continue to use Canadian soil for fundraising, propaganda, and planning violence in India.
India has long raised concerns about extremist elements operating from Canada. The report has reignited debate on Ottawa’s handling of diaspora-linked extremism and its impact on bilateral relations. (Agencies)
