A new Canadian government report has revealed that Khalistani extremist groups continue to receive financial backing from within Canada to support politically motivated violence, often through networks tied to charities and non-profit organisations.
The 2025 Assessment of Money Laundering and Terrorist Financing Risks, released by the Department of Finance, categorises organisations like Babbar Khalsa International and the International Sikh Youth Federation as part of Politically Motivated Violent Extremism (PMVE). These groups, designated terrorist entities under Canada’s Criminal Code, are suspected of misusing fundraising channels, including diaspora donations.
The report defines PMVE as “the use of violence to establish new political systems or structures within existing ones.” It clarifies that while such extremism may include religious elements, it is primarily driven by political goals rather than ethnic or racial supremacy.
Law enforcement and intelligence agencies noted that Khalistani extremist networks, alongside groups like Hamas and Hezbollah, have received funds originating from Canada. While Hamas and Hezbollah are described as “well-resourced,” Khalistani groups appear to operate in smaller, more fragmented pockets but continue to draw support through diaspora-based fundraising.
The report highlights misuse of the charitable and non-profit sectors as a prominent method for moving money. “Khalistani violent extremist groups have also been known to use networks to solicit donations from diaspora communities to raise and move funds,” it stated, though it added that such contributions form only a small portion of overall terrorist budgets.
The findings echo concerns raised by Canada’s intelligence agency CSIS, which in its June 2025 annual report confirmed that Khalistani extremists continue to use Canadian soil as a hub for promoting, fundraising, and planning violence in India.
“Khalistani extremists continue to use Canada as a base for the promotion, fundraising or planning of violence primarily in India,” the CSIS report categorically stated, further validating concerns long raised by New Delhi.
India has repeatedly cautioned Canada about Khalistani groups operating openly from its territory. The latest report reinforces New Delhi’s warnings, noting that Canada has effectively become a safe haven for anti-India elements since the 1980s, when Canada-based Khalistani extremists (CBKEs) first emerged as a national security threat.
The report has reignited debate within Canada about foreign interference, extremist financing, and diplomatic tensions with India, urging greater vigilance to curb politically motivated extremism on Canadian soil.
