At least two Khalistani extremist teams have acquired financial support originating from Canada, in keeping with a brand new Canadian authorities report on terror financing.
The report titled ‘2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada’ has recognized the Khalistani extremist teams receiving financial support originating from Canada as Babbar Khalsa International and the International Sikh Youth Federation.
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The growth comes two months after a report by Ottawa’s intelligence company mentioned a politically motivated violent extremism menace in Canada for the reason that mid-Eighties has manifested by Khalistani extremists searching for to make use of violent means to create an unbiased nation state known as Khalistan inside India’s Punjab.
The newest report mentioned the ‘Politically Motivated Violent Extremism (PMVE) encourages “the use of violence to establish new political systems, or new structures and norms within existing systems.” “While PMVE may include religious elements, actors are more focused on political self-determination or representation, rather than racial or ethnic supremacy,” it mentioned.
Several terrorist entities listed beneath the Criminal Code in Canada that fall beneath the PMVE class, comparable to Hamas, Hezbollah, and the Khalistani violent extremist teams Babbar Khalsa International and the International Sikh Youth Federation, have been noticed by regulation enforcement and intelligence companies to receive financial support originating from Canada, the report identified.
In 2022, the Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC) Operational Alert on Terrorist Activity Financing had recognized Hezbollah because the second most continuously recognized worldwide terrorist entity to receive outgoing Canadian funds.
The 2025 Assessment report detailed the PMVE financing strategies too and mentioned Hamas and Hezbollah are established and well-resourced teams that fall beneath the PMVE class.
“These groups use diverse funding methods to sustain their operations, including the abuse of the money services businesses (MSB) and banking sectors; use of cryptocurrencies; state financing; abuse of the charitable and non-profit organisations (NPO) sector; and criminal activity.
“Khalistani extremist groups supporting violent means to establish an independent state within Punjab, India, are suspected of raising funds in a number of 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 revealed.
Abuse of non-profit and charitable actions was a typical concern for the organisations talked about.
“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,” it identified.
Despite these observations, it’s estimated that income era by NPO abuse represents a comparatively small share of operational budgets of terrorist teams total, it clarified.
Illegal drug trafficking stays the very best cash laundering menace in Canada, adopted by fraud, industrial commerce fraud and trade-based cash laundering, and tax crimes, the report mentioned.
“These threats are each estimated to involve billions of dollars in illicit proceeds annually in Canada,” it added.
The newest report comes two months after the Canadian Security Intelligence Service’s report for 2024, launched on June 18, mentioned ongoing involvement in violent actions by Canada-based Khalistani extremists continues to pose a nationwide safety menace to Canada and Canadian pursuits.
“Since the mid-1980s, the PMVE threat in Canada has manifested primarily through Canada-based Khalistani extremists seeking to use and support violent means to create an independent nation state called Khalistan, largely within Punjab, India,” it had mentioned.
That report appeared to have vindicated New Delhi’s constant place that pro-Khalistani parts in Canada have been finishing up anti-India actions with impunity.
