Canadian Report Links Khalistani Extremists To Fundraising Networks

OTTAWA — The Canadian government has, for the first time, acknowledged that Khalistani extremist groups are operating from its soil and receiving financial support.

The disclosure comes in the Department of Finance’s 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, which flagged concerns over terror financing tied to politically motivated violence.

The report noted that while earlier Khalistani groups had extensive fundraising networks, they now appear to consist of smaller pockets of individuals loyal to the cause but unaffiliated with specific organizations.

It identified several terrorist entities listed under Canada’s Criminal Code — including Hamas, Hezbollah, Babbar Khalsa International, and the International Sikh Youth Federation — as groups observed by law enforcement and intelligence agencies to be receiving financial support from within Canada.

The assessment also underlined that diaspora networks and non-profit organizations have been used to solicit and move funds for Khalistani extremists.

This formal acknowledgement is being viewed as significant in the context of strained India–Canada relations.