Kathmandu. KATHMANDU: Nepal Insurance Authority (NIA) has suspended the reinsurance business of Himalayan Reinsurance (Himalayan Re Insurance).
The CIAA had carried out the investigation on the Himalayan Ree under the direction of the Department of Money Laundering. Following the completion of the investigation, the authority took regulatory action and halted the Himalayan Reco reinsurance business until mid-July.
The action was taken as per the decision of the NRA on May 29 (Tuesday). Although the reinsurance business has been banned, it will not affect the retrocession business of the company.
The authority has put restrictions or restrictions on many business decisions until financial transparency is observed. The authority has also given an ultimatum to improve the internal governance of the company by stopping new big contracts until the investigation report is received.
The Department of Money Laundering Investigation, the Commission for the Investigation of Abuse of Authority (CIAA) and the Central Investigation Bureau of Nepal Police have been investigating into the money laundering issues related to the establishment of Himalaya Rico, the licensing process and the source of investment of the promoter shareholders. In particular, Himalayan Rika promoters Deepak Bhatt and Sulav Agarwal are involved in this case. Bhatta has been accused of transferring billions of rupees to his personal accounts and buying shares of other companies with the same money.
The department has sought details of the promoter shareholders who bought the shares by paying a premium higher than the face value and the source of such money is not disclosed. Himalayan Relay has also been found to have sent out commission unnaturally through Alliant Reinsurance Brokers.
Former chairman Shekhar Golchha and four other directors have resigned from their posts amid extensive investigations. Uday Kumar Niraula has been appointed as the new chairman.
