Khalistani Extremist Groups Active In Canada, Raising Funds: Govt Report

A Canadian government report has acknowledged that Khalistani extremist organisations continue to operate and raise funds within Canada, validating India's long-standing concerns that pro-Khalistani elements are using Canadian territory to support anti-India activities.

The report, titled 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, noted that these groups target diaspora communities to solicit donations, often through non-profit organisations. It specifically identified Babbar Khalsa International and the International Sikh Youth Federation as beneficiaries of funds raised in Canada.

The assessment said, "Khalistani extremist groups supporting violent means to establish an independent state within Punjab, India, are suspected of raising funds in a number of countries, including Canada." It added that such groups fall under the broader category of Politically Motivated Violent Extremism (PMVE), which encourages the use of violence to create new political systems or alter existing ones. While PMVE may contain religious elements, it is primarily driven by political self-determination rather than racial or ethnic supremacy.

On June 16, 2025, members of the Sikh community were seen holding flags during a protest against Indian Prime Minister Narendra Modi in front of Calgary City Hall in Alberta (Representative image/AFP).

Khalistani Groups Listed Alongside Hamas and Hezbollah

The report placed at least two Khalistani groups in the same category as Hamas and Hezbollah, stating that all have been observed receiving financial support originating from Canada. It noted that while Khalistani groups once had extensive fundraising networks in the country, their current activities appear limited to smaller clusters of loyal individuals.

The assessment also highlighted how terrorist organisations raise money. Hamas and Hezbollah, for example, rely on methods such as exploiting money service businesses, banking channels, cryptocurrency, state financing, misuse of charitable and non-profit organisations, and other criminal activities. For Khalistani groups, diaspora communities remain a primary target for donations, often solicited through non-profit organisations and support networks.

Historical Context and Previous Warnings

The new findings build on a June 18, 2024 report by the Canadian Security Intelligence Service (CSIS), which had warned that since the mid-1980s, the PMVE threat in Canada has been most visible through Khalistani extremists seeking to create an independent state of Khalistan in Punjab, India, by violent means.

India-Canada Relations

This report comes at a delicate moment in India-Canada ties. Relations plunged in September 2023 after then Prime Minister Justin Trudeau accused India of involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar in Canada. New Delhi dismissed the allegation as "absurd and motivated," sparking a major diplomatic rift that led both countries to withdraw their envoys.

Since then, relations have begun to improve following Mark Carney's succession of Trudeau as Prime Minister. Carney pledged to address India's security concerns, and diplomatic missions have been restored. However, concrete action against Khalistani organisations in Canada is still awaited.