The Canadian government has confirmed India’s accusations that organizations linked to Khalistani terrorists are receiving funding from Canada and other countries. A new report on terrorism financing by the Canadian government indicates that at least two Khalistani extremist groups have received financial assistance from within the country. This 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 Khalistani extremist groups receiving financial support from Canada.
A report from Ottawa’s intelligence agency had previously stated that the threat of politically motivated violent extremism in Canada arose from Khalistani extremists attempting to use violent methods to create an independent country called Khalistan in India’s Punjab region.
The new Canadian government report, released two months after the initial report, explains that politically motivated violent extremism encourages the use of violence to establish new political systems or structures within existing ones. The report notes that politically motivated violent extremism may involve religious elements, but its factors are more focused on political self-determination or representation rather than racial or ethnic dominance.
According to the report, several terrorist organizations listed under the Criminal Code of Canada and involved in politically motivated violent extremism, such as Hamas, Hezbollah, and the Khalistani violent extremist groups Babbar Khalsa International and the International Sikh Youth Federation, are receiving financial assistance from within Canada.
A 2022 report by the Financial Transactions and Report Analysis Centre of Canada identified Hezbollah as the second most frequently cited international terrorist organization receiving funds from Canada. The 2025 report also provides a detailed description of politically motivated violent extremism financing methods, highlighting that Hamas and Hezbollah are well-established and well-resourced groups that fall into this category.
The report reveals that these groups use various financing methods to sustain their activities, including misuse of banking sectors, the use of cryptocurrencies, government funding, misuse of charitable and non-profit organizations, and criminal activities.
The report reveals that Khalistani extremist groups supporting violent methods to establish an independent region in India’s Punjab province are suspected of fundraising in Canada and several other countries. These groups previously had a fundraising network in Canada, but it now appears that they consist of small groups of individuals who are loyal to the issue but have no specific connection to any particular group.
The misuse of non-profit and charitable activities is a concern for the mentioned organizations. This report appears to validate New Delhi’s claims that pro-Khalistan elements in Canada are continuing anti-India activities without any restrictions.