Indian students being used by extortion rackets in Canada, says intelligence report

These rackets have evolved into a “sustained campaign of coercion” involving threats, intimidation, opportunistic violence and cross-provincial coordination, affecting businesses and families with deep ties to Punjab and other parts of India.

Some perpetrators have even identified themselves as members of the Bishnoi gang, designated as a terrorist organisation in Canada.

Extortion proceeds are frequently laundered through the Canadian financial system via email money transfers, cheques, cash deposits, and ATM transactions before potentially being funnelled back through informal channels like hawala.

The federal government recently convened high-level summits on extortion in Surrey, BC and Brampton, Ontario, bringing together leaders from all levels of government and law enforcement, including the Royal Canadian Mounted Police (RCMP) and Canada Border Services Agency. Surrey, in particular, has seen a local state of emergency declared earlier this year amid repeated incidents, including shootings at businesses linked to the community.

This also comes amid broader concerns in India about the safety of its diaspora and international students. Punjab has long been a major source of students heading to Canada, and reports indicate that some are being lured or coerced into these criminal networks due to financial pressures. Canadian authorities have already deported several Punjab-origin individuals linked to such cases, while Indian authorities continue to monitor the situation.

‘Follow-the-money strategy’

Since the start of 2026, FINTRAC has issued more than 100 financial intelligence disclosures related to extortion, already exceeding the total from the previous two years combined. These cases involve over 300 individuals and more than 63,000 transactions. The surge highlights a growing threat that has left many Punjabi business owners fearful, with some reportedly scaling back operations or considering returning to India.

FINTRAC’s latest data underscores the scale of the problem. In the 2024–25 fiscal year, it produced over 6,200 intelligence reports supporting investigations into money laundering, terrorist financing, and related crimes, assisting agencies at all levels.

“Extortion is a rising threat to the safety of Canadians, impacting more and more families and businesses,” said François-Philippe Champagne, Minister of Finance and National Revenue. “To detect, disrupt and defeat the networks behind these crimes, we launched a follow-the-money strategy that mobilises federal resources, local police and the private sector. Through our new Countering Extortion Partnership, we’re also sharpening our information sharing and intelligence, supporting these efforts to ensure that Canadians feel safe in their communities.”

Sarah Paquet, Director and Chief Executive Officer, FINTRAC, added that the agency is supporting law enforcement by providing financial intelligence, operational expertise, and guidance to help businesses detect suspicious activity. “By following the money and leveraging the power of financial intelligence, we can effectively target, disrupt and dismantle the organised criminal networks that profit from this illicit activity and threaten the safety of Canadians.”

The bulletin is aimed at helping banks, credit unions, and other businesses subject to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act spot red flags, such as unusual transactions by young Indian passport holders, and file suspicious transaction reports. FINTRAC has also deployed financial intelligence officers to work directly with police across the country and is sharing new systems with major financial institutions.