A number of terrorist teams, together with Khalistani extremist organisations, are nonetheless getting monetary assist from Canada to fund politically motivated violence, based on a brand new report by the Canadian Division of Finance.The 2025 Evaluation of Cash Laundering and Terrorist Financing Dangers lists teams like Babbar Khalsa Worldwide and the Worldwide Sikh Youth Federation underneath the class of Politically Motivated Violent Extremism (PMVE).

The report says these teams misuse funding networks, together with charities and non-profits, to assist their actions.PMVE is outlined within the report as “the usage of violence to determine new political methods or new buildings and norms inside current methods.”These Khalistani teams are already banned underneath Canada’s Legal Code, which additionally lists Hamas and Hezbollah.

The report states: “A number of terrorist entities listed underneath the Legal Code in Canada that fall underneath the PMVE class, comparable to Hamas, Hezbollah, and the Khalistani violent extremist teams Babbar Khalsa Worldwide and the Worldwide Sikh Youth Federation, have been noticed by legislation enforcement and intelligence companies to obtain monetary assist originating from Canada.”Canada’s monetary intelligence company FINTRAC had earlier warned, in 2022, that Hezbollah was the second most typical worldwide terrorist group to get funds from Canada.The brand new report explains how these teams increase cash. Whereas Hamas and Hezbollah are described as “well-resourced” and identified to make use of banks, cryptocurrencies, state sponsorship, and charities, Khalistani extremists are suspected of elevating funds in related methods, particularly by asking for donations from diaspora communities.The report provides: “The misuse of the charitable and NPO sectors has been noticed as a outstanding financing technique utilized by Hamas and Hezbollah. Khalistani violent extremist teams have additionally been identified to make use of networks to solicit donations from diaspora communities to boost and transfer funds, together with via NPOs. Regardless of these observations, it’s estimated that income era via NPO abuse represents a comparatively small share of operational budgets of terrorist teams total.”Earlier this 12 months, Canada’s high intelligence company, the Canadian Safety Intelligence Service (CSIS), additionally admitted that Khalistani extremists are utilizing Canadian soil to advertise, fundraise, and plan violence in India. Its annual report in June clearly acknowledged: “Khalistani extremists proceed to make use of Canada as a base for the promotion, fundraising or planning of violence primarily in India.”India has been elevating considerations about this situation for years, saying Canada has change into a secure haven for anti-India components. The CSIS report has now confirmed these considerations.The report additionally famous that for the reason that mid-Nineteen Eighties, the Khalistani extremist risk in Canada has largely come from Canada-based Khalistani extremists (CBKEs) who wish to create a separate state referred to as Khalistan in Punjab, India.The findings have reignited debate about extremist exercise in Canada and its affect on relations with India. The report referred to as for sturdy monitoring of each overseas affect and home extremist financing networks.