Ottawa, Sep 6 (NationPress) The Canadian government has publicly expressed concerns regarding the financing of terrorism associated with Khalistani extremists, marking the first acknowledgment that such groups have been operating from Canadian territory and receiving financial support—an issue India has persistently highlighted for years.

This revelation comes from a recent evaluation by Canada's Department of Finance concerning the risks of money laundering and terrorist financing.

The report indicates that various terrorist organizations, including Khalistani violent extremist factions, are still garnering financial support from within Canada for activities linked to politically motivated violence.

Canada has been recognized for years as a hub for Khalistani organizations such as Babbar Khalsa, the International Sikh Youth Federation, and Sikhs for Justice.

For the first time, Ottawa has formally acknowledged the presence of these extremist groups and the financial activities associated with them.

The document titled '2025 Assessment of Money Laundering and Terrorist Financing Risks in Canada', released by the Finance Department, noted that these groups continue to attract funds for activities related to politically motivated violence.

The report also stated that the Khalistani group is suspected of raising funds in several countries, including Canada.

"These groups previously had an extensive fundraising network in Canada but now appear to consist of smaller pockets of individuals who are loyal to the cause but lack specific affiliations with a particular group," the assessment noted.

It also emphasized that multiple terrorist entities listed under Canada's Criminal Code, which fall under the category of Politically Motivated Violent Extremism (PMVE), including Hamas, Hezbollah, and the Khalistani violent extremist groups Babbar Khalsa International and the International Sikh Youth Federation, have been found by law enforcement and intelligence agencies to receive financial support originating from Canada.

The report further highlighted that Canadian law enforcement and intelligence agencies have documented financial contributions to these extremist organizations, including Hamas and Hezbollah, from sources within the country.

This formal recognition is viewed as a significant development, especially in light of India's consistent warnings that Canada has become a sanctuary for anti-India elements.

Former Prime Minister Justin Trudeau faced considerable backlash for his perceived inaction regarding this issue, which has also contributed to strained relations with New Delhi.

The report pointed out that beyond Hamas and Hezbollah, Khalistani violent extremist groups have also been known to leverage networks to solicit donations from diaspora communities to raise and transfer funds, including through non-profit organizations.

The findings represent the first instance where Canada has formally recognized the extent of fundraising activities by Khalistani extremist groups on its territory, a matter that has long been a contentious issue between Ottawa and New Delhi.