NRB Islami Life Insurance, one of the country’s most scrutinised insurance companies, is facing grave allegations of embezzlement and money laundering totalling Tk 81 crore. The company’s chairman, GM Kibria, and his wife, Hosne Ara Begum—both known as close associates of the autocratic former Prime Minister Sheikh Hasina—stand accused of siphoning off company funds and laundering money abroad.
According to reliable sources, GM Kibria—also president of the Italy chapter of the Awami League and organising secretary of the All-European Awami League—allegedly exploited his political influence to enable large-scale financial irregularities. His wife, Hosne Ara, is accused of facilitating these actions during her tenure as director of the company’s overseas operations.
Shah Jamal Howlader, the company’s former managing director and a prominent political financier, has been identified as their chief accomplice. An investigation by the Insurance Development and Regulatory Authority (IDRA) confirmed Howlader’s involvement in laundering at least Tk 81 crore. As a result, IDRA cancelled his appointment.
A senior NRB Islami Life official, speaking on condition of anonymity, claimed that Kibria and his wife orchestrated the corruption scheme. They allegedly laundered funds disguised as commission payments through the company’s foreign branches, misappropriating vast sums in the process.
Analysts and anti-corruption campaigners have stressed the need to bring the chairman and his wife to justice, asserting that their interrogation could expose further irregularities within the company.
Sources also suggest that Kibria is currently preparing to flee the country. In response, former employees, investors, and civil society representatives have called for heightened surveillance and the prompt arrest of both Kibria and Hosne Ara.
The scandal has severely shaken investor confidence in NRB Islami Life and sparked renewed concerns over the government’s oversight of the insurance sector. Experts caution that inaction could result in a broader crisis of trust across the industry.
Despite a change in political leadership, GM Kibria remains in his role as chairman. His wife, a fellow political figure, was reportedly appointed as overseas agency director in name only—allegedly using the position to facilitate further fund siphoning.
The company was granted its operating licence in 2021. Within just three years, it is reportedly on the brink of bankruptcy due to widespread irregularities, placing policyholders’ deposits at serious risk.
IDRA’s investigation revealed numerous violations, including the sale of unauthorised insurance products, excessive management expenses, high policy lapse rates, misappropriation of funds labelled as “cash in hand,” and manipulation of single-premium records to cover up embezzlement.
Despite these findings, Shah Jamal Howlader continued serving as CEO. However, IDRA later rejected a proposal to reappoint him. On 10 June 2024, IDRA Director Ahmed Ehsan ul Hannan formally notified the company chairman of this decision.
The letter stated that Howlader had driven the company to a “high-risk and near-bankrupt” financial state. It cited misconduct such as false reporting, misappropriation of funds, and multiple violations of insurance laws—endangering both the company and its policyholders.
Howlader challenged the decision in the High Court, which on 25 July 2024 issued a six-month stay on IDRA’s decision, while simultaneously suspending his duties for the same period. IDRA subsequently appealed to the Chamber Court, which denied the stay and referred the matter back to a High Court bench. As of now, the issue remains unresolved.
When asked about the legal proceedings, IDRA Deputy Director and Spokesperson Md Solaiman said the authority has prepared all necessary legal documentation. “We expect the court to hear the matter soon,” he stated.
