Ottawa: Canada has issued a stark warning about Khalistani extremist groups raising funds within its borders, including through the misuse of charitable organizations, to fuel violent activities. The alert comes from the Canadian Finance Ministry’s 2025 “Assessment of Money Laundering and Terrorist Financing Risks,” which underscores the growing challenge of Khalistani extremism and its impact on national and global security.
The report highlights groups like Babbar Khalsa International and the International Sikh Youth Federation, alongside entities such as Hamas and Hezbollah, noting that these organizations have been observed receiving financial support from Canada. It points out that Khalistani extremist networks exploit diaspora communities to collect donations, often channeling funds through nonprofit organizations (NPOs). “Khalistani violent extremist groups have been known to use networks to solicit donations from diaspora communities to raise and move funds, including through NPOs,” the report states, emphasizing the exploitation of Canada’s charitable sector.
According to the report, Khalistani extremist fundraising has evolved from large-scale, organized efforts to smaller, decentralized groups. It notes that these networks, once supported by extensive operations, now consist of “smaller pockets of individuals with allegiance to the cause but seemingly no particular affiliation to a specific group.”
India has consistently raised alarms about Khalistani extremist activities in Canada, including listing Khalistani terrorists operating there. The issue gained global scrutiny following the 1985 Air India Flight 182 bombing, orchestrated by Canada-based extremists, which killed 329 people, primarily Canadians of Indian descent. The attack remains one of Canada’s deadliest terrorist incidents and continues to drive India’s concerns about Khalistani extremism in the country.
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New Delhi has also flagged events like so-called “Khalistan referendums” and rallies in Canada as signs of unchecked extremist activity. The Canadian Finance Ministry’s findings echo these concerns, with the Canadian Security Intelligence Service (CSIS) further labeling Canada-based Khalistani extremists (CBKEs) a national security threat in its annual report to Parliament earlier this year.
Amid strained relations under former Canadian Prime Minister Justin Trudeau, both India and Canada are taking steps to mend ties. Last month, the two nations reinstated high commissioners, signaling a move toward normalizing diplomatic relations.
