Canada flags funding of Khalistani extremist groups

This was stated in the 2025 Assessment of Money Laundering and Terrorist Funding Risks in Canada published by the Ministry of Finance and Revenue. The Canadian Government categories terrorist threats into three broad categories - ideologically motivated violent extremism or IMVE, politically motivated violent extremism or PMVE, and religiously motivated violent extremism or RMVE.

Pro-Khalistan groups are included under the PMVE category. Under that section, the report stated, “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.”

It said that pro-Khalistan separatists focused on “violent means” “are suspected of raising funds in a number of countries, including Canada,” the report noted. “These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals with allegiance to the cause but seemingly no particular affiliation to a specific group,” it added. Both the Babbar Khalsa International and the International Sikh Youth Federation are identified as terrorist entities by Canada.