Ottawa, Sept 6: A recent Canadian government report has spotlighted disturbing revelations about terror financing activities linked to Khalistani extremist groups operating within the country. For the first time, Ottawa has formally acknowledged that organisations such as Babbar Khalsa International, the International Sikh Youth Federation, and Sikhs for Justice have been active on Canadian soil and, receiving financial backing.

The findings come from the Department of Finance’s 2025 assessment on money laundering and terrorist financing risks. These Khalistani groups are categorised under Politically Motivated Violent Extremism (PMVE), alongside other globally recognised entities like Hamas and Hezbollah. According to the report, law enforcement and intelligence agencies have traced financial support for these groups back to Canadian sources.

The report outlines how these extremist organisations exploit a wide range of funding channels. These include donations from diaspora communities, misuse of charitable and nonprofit organisations, and illicit activities such as drug trafficking and vehicle theft. It also highlights the growing use of modern financial tools like crowdfunding platforms and cryptocurrencies to sustain their operations.

While these groups once maintained extensive fundraising networks, the report notes that their structure has evolved into smaller, loosely affiliated clusters of individuals who remain committed to the cause. Despite this shift, the threat persists, with Canada identified as a substantial hub for terror financing.

The revelations have reignited concerns about Canada’s role in enabling extremist activities and raised questions about the effectiveness of its counterterrorism and financial oversight mechanisms.