Pro-Khalistan terror outfits like Babbar Khalsa International and International Sikh Youth Federation are receiving financial support within Canada, according to the Canadian govt’s official report ‘Assessment of Money Laundering and Terrorist Financing Risks’, which acknowledges that the extremist groups are resorting to “violent means to establish an independent state within Punjab, India”.The report, however, said that the monetary support for the pro-Khalistan groups has now shrunk and is confined to small pockets of supporters. “These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals with allegiance to the cause,” it noted. Khalistani violent extremist groups have also been known to use networks to solicit donations from diaspora communities to raise and move funds, including through non-profit organisations,” the Canadian govt’s report noted. The acknowledgment of the use of violent means is in contrast to the description of their activities as “democratic freedoms” earlier.The report lists BKI and ISYF, along with Hamas and Hezbollah, in the “politically motivated violent extremism” category who have been able to generate funds in Canada.These groups, it said, used diverse funding methods to sustain their operations, including the abuse of the money services businesses and banking sectors; use of cryptocurrencies; state financing; abuse of the charitable and NPO sector; and criminal activity. The report covers all violent groups on how they were able to sustain themselves by finding resources within Canada. Self-financing methods were observed in two prominent terrorist attacks in Canada conducted by lone actors radicalised by ideologically motivated violent extremism.It cited the 2020 incident of a 17-year-old male radicalised by the incel (involuntary celibacy) movement who killed a woman and injured another at a massage parlour in Toronto, using only a sword to conduct the attack. Another case cited was from 2021, in which four members of a Muslim family were killed when an individual drove a pickup truck onto a pedestrian crosswalk in London, Ontario. In 2024, the individual was sentenced to life imprisonment for first-degree murder and attempted murder amounting to terrorism.The report also mentions Canada’s financial sector may be exposed to risks emanating from correspondent banking relationships with institutions known or suspected of servicing Hezbollah or Hamas.Cross-border networks and organised IMVE groups differ from lone actors in their financing, it noted. “Organised groups often rely on online communities and cross-border networks to raise funds and have been observed to rely on a host of financing methods, including commercial activities, such as merchandise sales; hosting paid events, such as talks and concerts; crowdfunding; charging membership fees; and accepting donations,” it said. “Some groups have also been known to engage in drug trafficking, weapons trafficking, and theft to fund their operations,” the report added.
