Key Points

"Khalistani extremist groups advocating violent means have long relied on support from diaspora communities. 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, a report notes that smaller clusters of sympathizers persist. These actors maintain allegiance to the Khalistan cause, raising funds through informal networks that are harder to detect and track," Antrariksh Singh wrote in an opinion piece for Khalsa Vox.

"One of the most consistent methods involves the misuse of Non-Profit Organisations (NPOs). These groups solicit donations under the guise of charitable or religious work, channeling money from the Sikh diaspora to extremist causes. Intelligence agencies have documented how such organisations are used not just to collect funds, but also to transfer them across borders under the cover of legitimate community support. Although the overall contribution of NPO abuse may represent only a small fraction of total extremist budgets, it provides both cover and credibility -- making it particularly difficult for regulators to interdict," the report added.

It revealed how money laundering mechanisms overlap with terrorist financing. Khalistani networks, similar to groups like Hezbollah, exploited hawalas and unregulated Money Service Businesses (MSBs) to quietly send money abroad. Supporters make structured deposits below reporting limits and subsequently channel funds through layered transfers.

"Though less well-documented for Khalistanis than for other groups, Canadian authorities warn that the same trade manipulation techniques -- over- and under-invoicing, fake imports/exports -- could be applied here. Cryptocurrency: While the report notes crypto is more associated with Hamas and Hezbollah, diaspora-linked actors sympathetic to Khalistan have shown increasing interest in small-scale digital donations. This emerging channel could bypass formal banking oversight," Khalsa Vox report stated.

Canada's multicultural society and strong remittance connections are a double-edged sword. Most of the funds sent abroad are legitimate and beneficial. However, extremist elements use this infrastructure to obscure illicit flows. According to the assessment, funds originating in Canada are either given to domestic sympathisers who depend on self-financing for propaganda or to foreign jurisdictions where extremist elements remain active. The report said, "These remittances are indistinguishable from ordinary diaspora support until forensic financial intelligence identifies anomalies."

- IANS