UK Uses New Counter-Terror Powers Against British Sikh Businessman
The UK sanctions British Sikh businessman Gurpreet Singh Rehal under the country’s new Domestic Counter-Terrorism Regime. The move signals a strong shift in the way the government targets financial networks linked to pro-Khalistan militant groups. Moreover, it marks the first major use of the regime to disrupt alleged terror financing connected to Babbar Khalsa.
Rehal, who was associated with the Panjab Warriors sports investment group, now faces an asset freeze. He also faces a director disqualification. The UK Treasury said that it suspects him of involvement in organisations linked to terrorism in India. Additionally, the government imposed an asset freeze on “Babbar Akali Lehar,” a group that authorities say promotes and supports the same banned outfit.
Treasury officials said that the sanctions aim to protect the UK’s financial system. They added that the action will block any attempt to use British financial services to support violence abroad. Lucy Rigby, Economic Secretary to the Treasury, said the UK will not allow terrorists to exploit its financial networks. She added that the government will use every tool to stop the flow of funds for extremist groups.
Government Cites Evidence of Terror Support and Recruitment
HM Treasury said that it assessed Rehal to be involved in activities supporting Babbar Khalsa. The department alleged that he promoted the group and helped its recruitment efforts. Moreover, officials said that he provided financial services and assisted in the purchase of weapons and military supplies.
The action followed close collaboration between the Treasury and policing agencies. The government said its goal is to protect national security. It also aims to safeguard peaceful communities affected by extremist activity. Under the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019, the Treasury can freeze assets and limit financial access for individuals suspected of supporting terrorism. These measures prevent terror financing and shield the British financial system from abuse.
The penalties for violating these sanctions are severe. Offenders can face up to seven years in prison. Civil penalties can reach one million pounds or half the breach value. Babbar Khalsa, also known as Babbar Khalsa International, is a proscribed terrorist group in the UK. Officials said that Babbar Akali Lehar meets the criteria of an “involved person” under current regulations.
The sanctions extend to several organisations owned by Rehal. These include Saving Punjab, Whitehawk Consultations Ltd, and Loha Designs. The government said the restrictions apply across all financial and commercial operations linked to him.
Panjab Warriors and Morecambe FC Clarify Rehal’s Role
Panjab Warriors, the London-based sports investment group, had completed the purchase of Morecambe Football Club in June this year. At the time, Rehal said the project was a commitment to the club and its community. However, the sanctions sparked immediate concern within the organisation and the football club.
Soon after the UK sanctions British Sikh businessman Rehal, Panjab Warriors and Morecambe FC issued a joint statement. They said that Rehal held only a consultancy role. They also claimed that he was no longer linked to either organisation. The firms said they took “immediate and decisive action” once they learned of the allegations.
They added that they operate under strict compliance systems. Moreover, they said that they strengthened internal procedures after the sanctions. Both organisations said they will continue to cooperate with authorities and follow all regulatory rules.
The case has drawn attention in both the UK and India. It highlights the government’s broader effort to disrupt international terror networks. It also stresses the growing use of financial tools to limit extremist groups. The move sets a clear precedent for future action under the UK’s Domestic Counter-Terrorism Regime.