Khalistani Terror Outfits Babbar Khalsa, ISYF Receiving Financial Support From Canada, Says Canadian Government Report

A new report by the Canadian Department of Finance reveals that terrorist organisations, including Khalistani terror groups, continue to receive financial support "originating from Canada" to fund politically motivated violence, reported The Times Of India.

The 2025 Assessment of Money Laundering and Terrorist Financing Risks reports lists groups such as Babbar Khalsa International and the International Sikh Youth Federation under the category of Politically Motivated Violent Extremism (PMVE).

The report states that these groups exploit funding networks, including charities and non-profits, to finance their activities.

“Several terrorist entities listed under the Criminal Code in Canada that fall under the PMVE category, such as Hamas, Hezbollah, and the Khalistani violent extremist groups Babbar Khalsa International and the International Sikh Youth Federation, have been observed by law enforcement and intelligence agencies to receive financial support originating from Canada,” the report said.

Canadian intelligence agency FINTRAC had earlier warned that Hezbollah uses international networks to raise funds.

The new report highlights that while Hamas and Hezbollah are “well-resourced” and use banks, cryptocurrencies, state sponsorship, and charities, Khalistani extremists largely rely on donations from diaspora communities.

It adds: “The misuse of the charitable and NPO sectors has been observed as a prominent financing method used by Hamas and Hezbollah. Khalistani violent extremist groups have also been known to use networks to solicit donations from diaspora communities to raise and move funds including through NPOs. Despite these observations, it is estimated that revenue generation through NPO abuse represents a relatively small percentage of operational budgets of terrorist groups overall.”

Earlier this year, CSIS confirmed that Khalistani extremists exploit Canada to promote, fundraise, and plan violence in India.

Its report stated: “Khalistani extremists continue to use Canada as a base for the promotion, fundraising or planning of violence primarily in India.”

The findings have reignited debate about extremist activity in Canada and its impact on India-Canada relations, calling for strict monitoring of foreign influence and domestic extremist financing.

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