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Canada Admits Pro-Khalistan Terror Funding Still Active, Though Shrinking

  • By Thetripurapost Web Desk, Ottawa/New Delhi
  • Sep 07, 2025
  • 435

 In a significant acknowledgment, the Canadian government’s latest “Assessment of Money Laundering and Terrorist Financing Risks” report has underlined the persistent financial support being received by pro-Khalistan terror outfits such as Babbar Khalsa International (BKI) and the International Sikh Youth Federation (ISYF) from within Canada.

The report notes that while the scale of funding has shrunk drastically compared to earlier decades, remnants of support survive in “small pockets of individuals with allegiance to the cause.” This marks a sharp departure from Canada’s earlier public narrative, which often couched such groups’ activities under the umbrella of democratic freedoms.

Violent Means Acknowledged

The assessment stresses that these groups are not merely political in nature but resort to “violent means to establish an independent state within Punjab, India.” Both BKI and ISYF are officially listed alongside Hamas and Hezbollah in the category of “politically motivated violent extremism,” a recognition that places pro-Khalistan groups firmly in the global terror financing matrix.

Methods of Financing

The Canadian government has identified a diverse range of fundraising strategies, including:

Abuse of money services businesses and the banking sector

Cryptocurrency channels

Exploitation of charitable and non-profit organisations

State-linked financing sources

Criminal activities such as drug trafficking, weapons smuggling, and theft


In addition, diaspora-linked networks have been instrumental in soliciting donations, often under the cover of religious or cultural organisations, according to the report.

Organised Groups vs Lone Actors

While lone actors radicalised by extremist ideologies have relied heavily on self-financing—as seen in the 2020 incel-inspired sword attack in Toronto and the 2021 Islamophobic truck attack in London, Ontario—cross-border groups like BKI and ISYF tap into online communities, crowdfunding, membership drives, and even commercial merchandise sales.

Wider Exposure Risks

The report also warns of Canada’s financial sector being indirectly exposed through correspondent banking ties with institutions suspected of servicing Hezbollah and Hamas, amplifying the transnational dimension of terror financing.

Strategic Shift in Canadian Discourse

The formal admission of violent means employed by Khalistani extremists represents a strategic shift in Ottawa’s narrative—from portraying them as free speech advocates to categorising them alongside globally designated terrorist organisations.