New Delhi: In a significant development, a report from Canada’s Department of Finance has acknowledged that Khalistani terrorists are operating in the country and receiving financial support.
It’s a validation of New Delhi’s long-standing concern about anti-India activities being carried out on Canadian soil by extremist groups like the Babbar Khalsa, International Sikh Youth Federation and Sikhs for Justice.
However, this is the first time that Canada has admitted it.
As per the 2025 Assessment of Money Laundering and Terrorist Financing Risks report, the Khalistani groups “are suspected of raising funds in a number of countries, including Canada.”
The report pointed to financial links between Canada and other listed terror groups like Hamas and Hezbollah under the Politically Motivated Violent Extremism (PMVE) category.
“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.
The report noted that Canada remains a terror-financing hub, as extremist groups are capitalising on charitable funds to indulge in drug trafficking and auto thefts. The report pointed to the misuse of non-profit sector by Khalistani terrorists and donations from expatriates.
“These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals with allegiance to the cause but seemingly no particular affiliation to a specific group,” the report observed.
“These groups use diverse funding methods to sustain their operations, including the abuse of the MSB and banking sectors; use of cryptocurrencies; state financing; abuse of the charitable and NPO sector; and criminal activity,” the report identified.
The sim of the Khalistani movement is to establish an independent, sovereign state ‘Khalistan’ in Punjab.
Over the years, Ottawa ignored India’s repeated concerns over Khalistani activities on Canadian soil, leading to a downslide in diplomatic ties between the two countries.
Two years ago, then-Canadian Prime Minister Justin Trudeau alleged India’s involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar in Canada. India firmly rejected the claims, seeking evidence. There was an unprecedented diplomatic standoff, including withdrawal of envoys.
Bilateral relations have improved since Mark Carney took over as Canada’s Prime Minister in March, and vowed to address India’s concerns.