Canadian Report Flags Financial Support for Khalistani Extremist Groups Through Non-Profit Networks

Ottawa, Sept 6 — Several Khalistani extremist organisations, along with other politically motivated violent extremist (PMVE) groups, continue to receive financial support from Canada to fund violence, according to a new assessment released by the Canadian Department of Finance.

The 2025 Assessment of Money Laundering and Terrorist Financing Risks highlights Babbar Khalsa International and the International Sikh Youth Federation as key Khalistani groups operating under the PMVE category. These organisations, designated as terrorist entities under the Canadian Criminal Code, are suspected of exploiting non-profit and charitable networks to raise and channel funds.

The report defines PMVE as “the use of violence to establish new political systems or new structures and norms within existing systems,” noting that while such movements may have religious elements, their core motivations are political. Alongside Khalistani groups, Hamas and Hezbollah were also named as PMVE entities benefiting from Canadian-origin funds.

According to the report, law enforcement and intelligence agencies have tracked financial flows from Canada to these organisations, with Hamas and Hezbollah using money service businesses, banks, cryptocurrencies, and non-profit abuse as key channels. Khalistani groups are believed to rely on diaspora donations, including fundraising through non-profit organisations, though revenue from such channels represents only a fraction of total extremist budgets.

This follows FINTRAC’s 2022 Operational Alert, which identified Hezbollah as the second most frequently funded international terrorist group from Canada.

The Canadian Security Intelligence Service (CSIS) had earlier acknowledged in its June 2025 annual report that Khalistani extremists were actively using Canada as a hub for promoting, fundraising, and planning violence in India. The agency noted that since the mid-1980s, the PMVE threat in Canada has largely stemmed from Canada-based Khalistani extremists (CBKEs).

India has repeatedly raised concerns over extremist activities originating from Canadian soil, accusing Ottawa of inaction. The latest findings appear to validate India’s longstanding warnings that Canada has become a safe haven for anti-India elements.

The Department of Finance assessment and CSIS report together call for heightened vigilance against extremist financing networks and foreign interference campaigns operating inside Canada.