AI Generated Summary
- Under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, breaches of these measures can result in up to seven years in prison or civil fines reaching either £1 million or 50 percent of the transaction value, depending on which is greater.
- Alongside the action against Rehal, His Majesty’s Treasury imposed a parallel asset freeze on the group Babbar Akali Lehar, citing its alleged role in promoting and aiding the same militant network.
- Government officials characterised the sanctions as the product of close coordination with law enforcement agencies and as an essential tool to protect both national security and communities affected by extremist violence.
In a landmark enforcement move, the British government has activated its new domestic counter-terror finance powers to penalise a U.K.-based businessman and an affiliated group accused of backing the proscribed Khalistani militant organisation Babbar Khalsa.
Gurpreet Singh Rehal, previously associated with the London-based Panjab Warriors sports investment vehicle, has been placed under a sweeping asset freeze and banned from holding company directorships. Officials say he is suspected of belonging to or assisting organisations tied to terrorism in India and of channelling financial support toward Babbar Khalsa’s operations.
Alongside the action against Rehal, His Majesty’s Treasury imposed a parallel asset freeze on the group Babbar Akali Lehar, citing its alleged role in promoting and aiding the same militant network.
‘Every Tool at Our Disposal’
Economic Secretary to the Treasury Lucy Rigby described the sanctions as a decisive warning to those attempting to exploit Britain’s financial system.
“We will not stand by while terrorists exploit Britain’s financial system,” Rigby said. “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 Treasury alleges that Rehal’s activities extended beyond financial facilitation, accusing him of helping to promote Babbar Khalsa’s ideology, supporting recruitment efforts, and contributing to the procurement of weapons and other military materials. Officials say Babbar Akali Lehar has carried out similar functions on behalf of the banned organisation.
Freezes, Prohibitions and Criminal Liability
The sanctions mean that all funds, assets and economic resources in the U.K. controlled by Rehal or Babbar Akali Lehar are now frozen. British individuals and entities are prohibited from handling those assets or making financial services available to them without a Treasury licence.
Rehal has also been disqualified from involvement in company management. The restrictions extend to entities he owns or controls, including Saving Punjab, Whitehawk Consultations Ltd and Loha Designs.
Under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, breaches of these measures can result in up to seven years in prison or civil fines reaching either £1 million or 50 percent of the transaction value, depending on which is greater.
Football Club Distances Itself
The move has also sent shockwaves through English football. Panjab Warriors, which completed the purchase of Morecambe FC in June, issued a joint statement with the club in the hours following the announcement.
The two organisations insisted that Rehal no longer has any involvement with either body, stating he previously served only in a consultancy capacity.
“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 read.
Club executives added they have tightened internal governance and due-diligence procedures and will continue cooperating with authorities.
A New Era of Domestic Enforcement
Government officials characterised the sanctions as the product of close coordination with law enforcement agencies and as an essential tool to protect both national security and communities affected by extremist violence.
Babbar Khalsa, also known as Babbar Khalsa International, remains designated a terrorist organisation in the U.K. Treasury assessments describe Babbar Akali Lehar as an “involved person,” directly contributing to its aims.
The action signals a notable shift in Britain’s counter-terror finance posture: the first deployment of a domestic mechanism specifically crafted to sever the financial lifelines of overseas extremist networks.
As compliance checks ripple through sporting, financial and community organisations linked to the parties concerned, officials stress that this week’s message is clear: the U.K. intends to move swiftly and forcefully to prevent its institutions from becoming conduits of global militancy.
