UK Implements First Domestic Counter-Terrorism Sanctions Against Pro-Khalistan Financier and Group

The UK government has implemented sanctions against a British Sikh businessman and an associated group in the first application of the country's 'Domestic Counter-Terrorism Regime' to disrupt funding channels for the pro-Khalistan terrorist organization Babbar Khalsa.

Gurpreet Singh Rehal, connected to the Panjab Warriors sports investment company, now faces an asset freeze and director disqualification as authorities suspect his involvement with organizations engaged in terrorism in India, according to an announcement from the UK's Treasury department on Thursday.

The Treasury simultaneously imposed an asset freeze on "Babbar Akali Lehar" for its role in promoting and supporting the same terrorist organization.

"We will not stand by while terrorists exploit Britain's financial system," declared Lucy Rigby, Economic Secretary to the Treasury.

"This landmark action shows we are prepared to use every tool at our disposal to choke off funding for terrorism – wherever it occurs and whoever is responsible. The UK stands firmly with peaceful communities against those who promote violence and hatred," she emphasized.

His Majesty's (HM) Treasury assessment concludes that Rehal is involved in the terrorist activities of both Babbar Khalsa and Babbar Akali Lehar, including promotion, recruitment, financial service provision, and support through weapons and military material procurement.

"HM Treasury also assesses that Babbar Akali Lehar is associated with, and involved in, Babbar Khalsa's terrorist activities by promoting and encouraging and carrying out recruitment activities for the group and itself," the department stated.

Under this crackdown, all funds and economic resources within the UK that are owned, held or controlled by either Rehal or Babbar Akali Lehar are now subject to an asset freeze. These designations prevent any UK persons or entities from dealing with funds or economic resources owned by either party, or making financial services available to them without specific Treasury authorization or an applicable exception. This extends to entities under their ownership or control.

"Rehal is also subject to director disqualification sanctions which prohibit him from acting as a director of a company or directly or indirectly taking part in or being concerned in the promotion, formation or management of a company," the Treasury explained.

The sanctions result from close collaboration between the Treasury and police partners, reflecting the British government's commitment to protecting national security and communities affected by terrorism.

Under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, HM Treasury possesses authority to freeze assets and impose restrictions on individuals and entities suspected of terrorism involvement. This framework helps prevent terrorist financing and protects the UK financial system from misuse.

Violations of these sanctions carry penalties of up to seven years' imprisonment upon indictment, or civil penalties reaching up to 1 million pounds or 50 percent of the breach value, whichever is greater.

The Treasury noted that Babbar Khalsa, which also operates as Babbar Khalsa International, is a proscribed terrorist organization, and its assessment considers Babbar Akali Lehar an "involved person" under the regulations.

Sanctions against Rehal extend to organizations he owns, specifically: Saving Punjab, Whitehawk Consultations Ltd, and the unincorporated organization Loha Designs.

Panjab Warriors, a London-based global sports investment firm, completed the purchase of Morecambe Football Club (FC) in Lancashire, north-west England, in June.

"This is more than a business venture; it's a commitment to the fans, the town, and the future of Morecambe FC," Gurpreet Singh Rehal stated on behalf of Panjab Warriors at the time.

Following the government's sanctions announcement on Thursday, Morecambe FC and Panjab Warriors issued a joint statement claiming that Rehal held only a "consultancy role" and is no longer affiliated with either organization.

"Following recent serious concerns that have come to light, we took immediate and decisive action, and his association with both organisations has been fully removed," the statement declared.

"Both organisations operate under strict governance and compliance standards, and we have used this moment to further strengthen our internal processes, including enhanced due diligence checks for key personnel. We will continue to work closely with the relevant authorities and in full alignment with all regulatory requirements," it concluded.