Khalistani groups receive financial support from Canada for politically motivated violence, a new report has revealed. The 2025 Assessment of Money Laundering and Terrorist Financing Risks, released by Canada’s Department of Finance, highlights Babbar Khalsa International and the International Sikh Youth Federation as groups exploiting funding channels, including charities and non-profits, to back their agenda.
The report categorises them under Politically Motivated Violent Extremism (PMVE), which refers to using violence to reshape political systems. It adds that while religious elements may appear, the core driver remains political self-determination. Other groups under this category include Hamas and Hezbollah, which have also received funds from Canada.
Canadian intelligence (CSIS) has already confirmed that Khalistani extremists use Canadian soil to promote, plan, and fundraise for violence in India. The new findings echo India’s long-standing concerns, showing how diaspora donations and financial networks keep extremist groups active.
The report further warns of misuse of charities and money service businesses, though it estimates such revenue is a small portion of the overall budgets. Still, it reinforces the fact that Canada has become a hub for anti-India elements, sparking renewed concerns over extremist financing and foreign interference.
