The Canadian government has acknowledged in a recent report that certain Khalistani groups, including Babbar Khalsa International and the International Sikh Youth Federation, are active within the country and have received financial backing originating from Canada. This comes amid repeated concerns raised by New Delhi over the use of Canadian soil for activities targeting India.

The report, titled 2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada, categorizes these organizations under Politically Motivated Violent Extremism (PMVE). According to the document, PMVE involves promoting violence to create new political systems or reshape existing ones. Groups such as Hamas and Hezbollah have also been placed in the same category.

It further highlights that these organizations rely on a wide range of funding methods to sustain their operations. These include exploiting money service businesses, the formal banking sector, and the charitable and non-profit sectors, as well as turning to cryptocurrencies to channel financial support.

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