A Canadian government report has acknowledged that Khalistani extremist organisations continue to operate and raise funds within Canada, lending weight to India’s long-standing concerns about such groups using Canadian soil for anti-India activities.
The report, 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, identified Babbar Khalsa International and the International Sikh Youth Federation as organisations receiving funds originating in Canada.
The assessment noted that Khalistani groups fall under the broader category of Politically Motivated Violent Extremism (PMVE), which promotes violence to establish new political systems or structures. It underlined that while PMVE may involve religious themes, its focus remains political self-determination rather than ethnic supremacy.
Canada’s financial watchdogs also observed that these outfits, once supported by extensive fundraising networks, now rely on smaller groups of loyal individuals within the diaspora. Their activities were mentioned alongside those of Hamas and Hezbollah, which also benefit from Canadian-origin funds, according to law enforcement and intelligence monitoring.
The report outlined fundraising methods ranging from abuse of the charity sector, money services businesses, and cryptocurrencies, to direct solicitation of donations from diaspora communities.
This acknowledgement comes against the backdrop of strained India-Canada ties, particularly after the 2023 diplomatic standoff over the killing of Hardeep Singh Nijjar. While relations have improved under Prime Minister Mark Carney, with envoys reinstated, concrete Canadian action against Khalistani groups is still awaited.