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**Headline: Canadian Report Identifies Khalistani Groups Receiving Financial Support**

**Ottawa – September 6, 2025** – A new Canadian government report has revealed that at least two Khalistani extremist groups, Babbar Khalsa International and the International Sikh Youth Federation, are receiving financial support originating from within Canada. The “2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada” highlights the continued risk posed by politically motivated violent extremism (PMVE), which includes groups seeking to establish an independent Khalistan within India’s Punjab region.

The report comes on the heels of a June report by the Canadian Security Intelligence Service (CSIS) which identified Khalistani extremism as a national security threat. While the new assessment acknowledges that groups like Hamas and Hezbollah use diverse funding methods, including abuse of charities, it points out that Khalistani groups are also suspected of raising funds through diaspora communities, including through Non-Profit Organizations (NPOs).

The report emphasizes that illegal drug trafficking remains Canada’s largest money laundering threat. It further adds the revenue generation through NPO abuse represents a relatively small percentage of operational budgets of terrorist groups overall. Despite these observations, this assessment is bound to raise concerns and renew scrutiny of pro-Khalistani activities within Canada, a position India has held for some time, and their potential impact on national security. The Financial Transactions and Reports Analysis Centre of Canada’s (FINTRAC) had identified Hezbollah as the second most frequently identified international terrorist entity to receive outgoing Canadian funds in 2022.

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