Canada Acknowledges Khalistani Extremist Operations and Fundraising on Its Soil: Report

Ottawa- In a significant development, the Canadian government has officially admitted for the first time that Khalistani extremist groups have been operating from its territory and raising funds—an issue India has repeatedly flagged over the years.

The acknowledgement comes in a new assessment by Canada’s Department of Finance on money laundering and terrorist financing risks.

According to the 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, several terrorist entities, including Khalistani violent extremist groups, continue to receive financial support within Canada for activities linked to politically motivated violence.

Canada has long served as a hub for Khalistani outfits such as Babbar Khalsa International, the International Sikh Youth Federation, and Sikhs for Justice. For the first time, Ottawa has formally recognized both their presence and the financial activities associated with them.

The report noted: “Khalistani groups are suspected of raising funds in a number of countries, including Canada. While their earlier fundraising networks were extensive, they now appear to consist of smaller pockets of individuals loyal to the cause, though not necessarily tied to a specific group.”

It further stated that terrorist entities listed under Canada’s Criminal Code—including Hamas, Hezbollah, and Khalistani extremist groups like Babbar Khalsa International and the International Sikh Youth Federation—have been observed by law enforcement and intelligence agencies receiving financial backing from Canadian sources.

The assessment also highlighted that these groups often use diaspora networks and non-profit organizations (NPOs) to collect and channel funds.

This formal admission is seen as a major shift, particularly given India’s longstanding concerns that Canada has been a safe haven for anti-India elements. Former Prime Minister Justin Trudeau had faced criticism at home and abroad for not taking stronger action on the issue, which strained bilateral ties with New Delhi.

The findings mark the first official recognition by Ottawa of the scale of Khalistani extremist fundraising within Canada, alongside other terrorist organizations such as Hamas and Hezbollah.

With inputs from IANS