The Canadian government has provided confirmation of India’s allegations concerning the funding of organizations connected to Khalistani terrorists, a critical development. A newly released Canadian government report focused on terrorism financing reveals that at least two Khalistani extremist groups are receiving financial aid from within the country. The report, titled “2025 Assessment of Money Laundering and Terrorist Financing Risk in Canada,” identifies Babbar Khalsa International and the International Sikh Youth Federation as the recipients of this financial support originating from Canada.
A previous report from Ottawa’s intelligence agencies indicated that the rise of politically motivated violent extremism in Canada was connected to Khalistani extremists’ efforts to establish an independent Khalistan in India’s Punjab through violence.
The new Canadian government report, released after the initial assessment, states that politically motivated violent extremism encourages the use of violence to create new political structures or alter existing ones. The report further notes that while religious aspects may be present, the primary focus of this type of extremism centers on political self-determination or representation, rather than racial or ethnic supremacy.
The report also indicates that several terrorist organizations listed under Canada’s Criminal Code and involved in politically motivated violent extremism, including Hamas, Hezbollah, and the Khalistani extremist groups Babbar Khalsa International and International Sikh Youth Federation, are receiving financial support from within Canada.
A 2022 report by the Financial Transactions and Report Analysis Centre of Canada had identified Hezbollah as the second most frequently cited international terrorist organization receiving funding from Canada. The 2025 report offers a detailed analysis of the methods employed to finance politically motivated violent extremism, pointing out the well-established and well-resourced nature of Hamas and Hezbollah.
The report elaborates on the diverse methods these groups utilize to maintain their operations, including the abuse of banking sectors, the use of cryptocurrencies, government funding, the misuse of charitable and non-profit organizations, and involvement in criminal activities.
Furthermore, the report states that Khalistani extremist groups supporting violent means to establish an independent region in India’s Punjab are suspected of fundraising in Canada and other countries. These groups previously had a fundraising network in Canada, but it now appears that they comprise smaller groups of individuals who are committed to the cause but lack specific ties to any particular group.
The misuse of non-profit and charitable activities poses a significant concern for the organizations mentioned. This report appears to validate New Delhi’s claims that pro-Khalistan elements in Canada are carrying out anti-India activities without restriction.