OTTAWA– Khalistani extremist groups are misusing charitable fronts and diaspora donations to fund violent activities, according to a new report highlighting ongoing concerns over extremist financing in Canada.
The report, published by Khalsa Vox, warns that organizations advocating for Khalistan through violent means continue to tap into Sikh diaspora communities for money, often soliciting donations under the pretense of religious or charitable causes.
“Khalistani extremist groups advocating violent means have long relied on support from diaspora communities,” wrote Antrariksh Singh in an opinion piece for the outlet. “In the 1980s and 1990s, Canada served as a hub for fundraising networks tied to groups like Babbar Khalsa International and the International Sikh Youth Federation. While those extensive networks have fragmented, smaller clusters of sympathizers persist.”
According to the report, one of the most consistent methods involves the misuse of non-profit organizations (NPOs). Intelligence agencies have documented how these groups use NPOs not just to raise money, but also to move funds across borders under the cover of community support. Though such donations represent only a fraction of extremist budgets, the use of NPOs provides cover and credibility that complicates enforcement efforts.
The assessment also revealed how Khalistani networks overlap with broader money laundering and terrorist financing practices. Techniques include hawala transfers, use of unregulated money service businesses (MSBs), and structured deposits designed to avoid reporting thresholds. Canadian authorities have further cautioned that trade-based money laundering — including false invoicing — could be adapted by such groups.
While cryptocurrency donations are more closely associated with groups like Hamas and Hezbollah, the report noted a growing interest among Khalistan-linked sympathizers in using digital assets to bypass formal banking oversight.
Canada’s large remittance flows, central to its multicultural society, provide both legitimate support and a potential smokescreen for extremist fundraising. According to the report, funds originating in Canada are sometimes directed to local sympathizers engaged in propaganda, while other amounts are channeled abroad to sustain extremist activity. These transactions, the report noted, are difficult to distinguish from ordinary diaspora support until anomalies are flagged by financial intelligence.
The findings add to long-standing concerns that extremist elements continue to exploit Canada’s open financial and charitable systems to sustain their networks, even as most diaspora contributions remain lawful and beneficial. (Source: IANS)
