Canadian Government Report Links Khalistani Groups to Terror Funding
A new Canadian government assessment on money laundering and terrorist financing has identified Khalistani extremist groups, including Babbar Khalsa International (BKI) and the International Sikh Youth Federation (ISYF), as posing significant financing risks. The report states these groups exploit Canada's financial system and diaspora networks to raise funds. This official acknowledgment comes amid strained diplomatic relations between India and Canada over pro-Khalistan activities, with New Delhi repeatedly accusing Ottawa of inaction against such groups.
Unpacked:
Khalistani extremist groups use diverse methods to raise and move funds, including exploiting charitable and non-profit organizations, abusing the banking and money services sectors, using cryptocurrencies, engaging in criminal activities like drug trafficking and auto theft, and soliciting donations from diaspora communities.
India has long accused Canada of not taking sufficient action against pro-Khalistan groups operating on its soil. This official acknowledgment supports India’s concerns, potentially increasing pressure on Canada to act and further straining already tense diplomatic relations between the two countries.
While these groups once maintained an extensive fundraising network, current activity appears limited to smaller pockets of supporters. The scale of financial support has diminished, but the risks from even reduced funding remain significant for national security.
Babbar Khalsa International and the International Sikh Youth Federation are Sikh extremist groups advocating for an independent Khalistan. Both are listed as terrorist organizations under Canada’s Criminal Code and are classified as politically motivated violent extremist (PMVE) groups in official Canadian reports.