A recent Canadian government report has sounded alarm bells over terror financing activities linked to Khalistani extremists within the country.
Although it has long been an open secret that Canada offers a safe refuge to Khalistani outfits such as Babbar Khalsa, the International Sikh Youth Federation, and Sikhs for Justice, Ottawa has, for the first time, formally acknowledged that these organisations are active on Canadian soil and benefiting from financial support.
This admission appears in an assessment prepared by Canada’s Finance Department on the risks of money laundering and terrorist financing.
The report specifically states that Khalistani organisations “are suspected of raising funds in a number of countries, including Canada.”
Beyond Khalistani extremists, the assessment also highlighted connections to other terror organisations, noting financial flows linked to groups like Hamas and Hezbollah under the Politically Motivated Violent Extremism (PMVE) category.
According to the report, “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.”
Funding Exploitation
The report further underscores how extremist groups exploit both legitimate and illegitimate channels to sustain their operations.
It points to the use of charitable funds, proceeds from drug trafficking, and auto theft networks, adding that Canada has become a hub for terror financing.
It particularly highlights the misuse of the non-profit and charitable sectors by Khalistani extremists, bolstered by donations flowing in from expatriate communities.
While earlier these groups operated through an extensive fundraising apparatus within Canada, the new report notes that they now appear to rely on smaller, fragmented circles of individuals who remain loyal to the separatist cause but may not be directly affiliated with any one formal organisation.
The assessment also flagged a variety of funding techniques used by these groups, ranging from crowdfunding and cryptocurrency transactions to more traditional methods of financial manipulation.
It warned that these groups employ “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 visible presence of Khalistani extremists in Canada has been repeatedly documented in videos, witness accounts, and media investigations, yet authorities have consistently failed to take meaningful action.
Former Canadian Prime Minister Justin Trudeau has faced accusations of turning a blind eye to extremist activities directed against India, allowing them to flourish unchecked.
With Trudeau now out of power, attention is squarely on his successor, Mark Carney, and whether he will attempt to reverse this long-standing policy of neglect and indifference.
(With inputs from IBNS)
