Canada govt report admits Khalistani 'terror' groups receiving funds from the country

As the violent Khalistani movement continues to grapple with Canada, a government report revealed that the extremist group is getting financial support from within the country and using it inappropriately. The government report was released by Canada’s Department of Finance, titled “ 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada.”

The report outrightly described Khalistani violent extremists as “terrorist entities,” maintaining that the group have been receiving financial support originating from Canada. As per the assessment, Babbar Khalsa International and the International Sikh Youth Federation are among the Khalistani groups that have received the majority of funding from Canada.

“Several terrorist entities listed under the Criminal Code in Canada that fall under the Politically Motivated Violent Extremism (PMVE) category, such as Hamas, Hezbollah, and the Khalistani violent extremist groups Babbar Khalsa International and the International Sikh Youth Federation, have been observed by law enforcement and intelligence agencies to receive financial support originating from Canada," the report said.

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In the report, the government acknowledged that the Khalistani extremist groups are resorting to “violent means to establish an independent state within Punjab, India".

It also made it clear that the Khalistani groups mentioned in the report are barred from raising funds in various countries, including Canada. “These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals with allegiance to the cause but seemingly no particular affiliation to a specific group," the report said.

The report revealed that the Khalistani extremists are using non-profit organisations, among other means, to raise funds for their activities. “The misuse of the charitable and NPO sectors has been observed as a prominent financing method used by Hamas and Hezbollah. Khalistani violent extremist groups have also been known to use networks to solicit donations from diaspora communities to raise and move funds, including through NPOs," the report stated.

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It also mentioned that NPOs in Canada tend to have little to no risk for money launderers and terrorist groups who are looking for funding. “With only a small subset undertaking activities that are vulnerable to terrorist financing abuse”.

The report went on to suggest to the Canadian government that these risks should be thoroughly evaluated on a case-by-case basis. It is pertinent to note that Canada’s admission of Khalistani extremism is coming amid the country’s improving ties with India.  

Ever since Canadian Prime Minister Mark Carney's government came to power, Ottawa and New Delhi have been attempting to mend their ties. One of the signs of both nations’ attempt to improve strained ties is the fact that India and Canada announced new high commissioners to each other’s countries last month.

The relations between New Delhi and Ottawa hit rock bottom after former Canadian Prime Minister Justin Trudeau alleged that agents working for the Indian government were responsible for the killing of Khalistani terrorist Hardeep Singh Nijjar in Surrey.

India’s previous high commissioner had left Canada in October, and Ottawa announced that he was among six diplomats “expelled" after they were linked, without proof, to Nijjar’s murder. Meanwhile, India also said that it had ordered the expulsion of six high-ranking Canadian diplomats.