Canada acknowledges Khalistani groups receiving financial support from sources within country

Canada has officially acknowledged that Khalistani violent extremist groups are receiving financial support from sources within the country. This was disclosed in a report published by the Ministry of Finance titled, 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada. According to the report, law enforcement and intelligence agencies have observed that pro-Khalistan groups, which are classified under politically motivated violent extremism (PMVE), get financial backing from individuals and networks based in Canada.
 
These groups include Babbar Khalsa International and the International Sikh Youth Federation, both of which are listed as terrorist organisations under Canada’s Criminal Code. The report notes that while these groups once had an extensive fundraising network in Canada, they now seem to operate through smaller groups of individuals who support the Khalistan cause without being tied to any specific organisation. The government warned that terrorist financing poses serious risks to Canada’s national security and reputation.
 
It could damage the country’s international standing and reduce trust in Canadian institutions, both at home and abroad. This admission follows similar concerns highlighted in a recent report by the Canadian Security Intelligence Service (CSIS). That report traced the roots of the threat back to the 1980s and noted that Canada-based Khalistani extremists continue to support violent efforts to create an independent Khalistan in India’s Punjab region.