Research on Islamic Microfinancing

In driving its research niche in Islamic Financial Criminology (IFC), the Accounting Research Institute (ARI) is promoting a research agenda related to Islamic Microfinancing.  Recognising the gap in the existing microfinance business framework, ARI researchers are proposing on the need to link entrepreneurs with a reputable business partner to provide a total value chain to the microfinance agenda of business sustainability and poverty eradication.  Today, ARI researchers met up with a prominent business owner, Dato' Ameer, who is the Managing Director of Mydin Holding.  Mydin is the largest and most well established Malaysian retail and wholesale organization with more than 72 outlets.  Currently, Mydin products range from food line, household, soft line and hard line items.  From the meeting and discussion, Dato' Ameer has agreed in principle to participate as "viable business partner" in the Islamic Microfinance research project.  A pilot project which will commence in September/October 2012 will involve selected entrepreneurs to be jointly decided by ARI and Amanah Ikhtiar Malaysia (AIM).

Welcome Post Doc Dr Bashir

The Accounting Research Institute (ARI) welcomes Dr Bashir, a post doctoral scholar who just reported for duty this week.  Dr Bashir, a Nigerian, graduated recently from Universiti Utara Malaysia (UUM) with PhD in Corporate Governance.  As a post doctoral scholar, Dr Bashir will work closely with Prof Dr Rashidah, ARI deputy director and with other members of the Corporate Governance Research Centre (CGRC).  His main task is to write and publish at least twelve articles in indexed journals per every year of attachment.  In support of ARI's niche research area in Islamic Financial Criminology, Dr Bashir will also participate in ARI's research activity.

Working Visit to Brimal Stampress Engineering

The Accounting Research Institute (ARI) was recently involved with the training program of the "Groom Big" project organized by the Malaysian Productivity Corporation (MPC).  One of the aspirations of the program is to elevate participating companies to focus on the export market.  Today, a group of ARI researchers visited one of the participating companies, Brimal Stampress Sdn Bhd in Kapar, Klang.  Brimal Stampress principal activity is to manufacture and supply automotive parts to automotive manufacturing companies.  Currently, its three main customers are namely Proton, Perodua and Modenas.  Basically, the main aim of the visit was to get Brimal employees to participate in ARI's management  accounting project on Target Costing Implementation Decisions.  Target costing is essentially a management philosophy in dealing with how companies make decision on matters related to product costing, product pricing and product quality.

ARI-IBFIM Working Collaboration

In its effort to involve practitioners and industries for all its research projects, the Accounting Research Institute (ARI) visited the Islamic Banking and Finance Institute Malaysia (IBFIM) today.  ARI was represented by four of its researchers.  The group met up with IBFIM's Chief Executive Officer, Dato' Dr Adnan Alias and researchers of the institute and had a discussion  on possible research and working collaboration between the two entities.  Specifically, ARI researchers proposed a project related to Islamic CSR (i-CSR).  i- CSR is an ongoing joint research project between two Malaysian universities (UiTM & USM) and  two Indonesian universities (Sebelas Maret Universiti and Muamalat Universiti).   Basically, the proposed i-CSR dimensions are premised on Maqasit-based principles as well as global CSR framework.  An earlier pilot project had reviewed CSR disclosures of six Islamic banks in Malaysia and Indonesia.   Based on some preliminary findings, the group now needs feedbacks from both practitioners and industry players on the suitability and viability of the measurement.  IBFIM, as a leading Islamic Finance Solutions Partner can certainly play an important role in linking a research institution such as ARI with the Islamic Finance industry.  i-CSR has great potential in supporting Malaysia's vision of leading the Islamic Finance industry globally......

Research Cluster Publication Workshop

The Accounting Research Institute (ARI) congratulates Associate Professor Dr Zuraidah Sanusi (ARI deputy director and head of research cluster) and her team from the financial criminology research cluster for organising a successful 3-day publication workshop cum research progress presentations in Port Dickson, Negeri Sembilan.  Essentially, this cluster is currently focussing on several research projects which include fraud detection programs for internal auditors; the use of artificial intelligence in fraud detection system and  developing fraud risk indicators to investigate financial statement frauds.  The workshop has successfully finalized eight papers that would be submitted to various indexed journals.  Members of the cluster were also exposed to the use of a "user-friendly" Mendeley software (free download) by Mr. Mohd Daniel Mohd Nassir, our PhD student.  Basically, Mendeley is a bibliographic or referencing software that could be used to assist the referencing of articles in a more systematic and effective manner.  Congratulations all. 

Mazda Seven Guiding Principles

In an interview with the Star Newspaper, Mazda Motor Corp representative director, president and chief executive Takashi Yamanouchi spoke of the "seven guiding principles", a management philisophy that is being practiced successfully by the company to maintain its competitive edge.  Basically, the principles are built on the belief that investing in people is important to build a company that employs people who enjoy their work.  Premised on this belief, the seven guiding principles are namely: integrity, basic & flawless execution, continuous improvement (kaizen), challenger spirit, self initiative, tomoiku or mutual learning and 1Mazda.  The concept of 1Mazda aims to instill into employees of Mazda to be sincere, faithful to the basics, to have a challenging spirit, to mutually develop others and oneself.

Note: Some captions of this entry have been extracted from the Star Online Newspaper 5th August 2012 - Business section

Meeting Prof Clive Walker

The Accounting Research Institute (ARI) welcomes the visit of an important guest from the University of Leeds, UK: Prof Clive Walker.  Prof Walker who is an international expert in Criminal Justice, met up and had a discussion with ARI researchers yesterday. He delivered a talk titled "Terrorism Financing and the Policing of Charities".  Globally, charity organisations are the least regulated entities. He posits that whilst charity causes are genuine, some irresponsible individuals may abuse the system for personal gains.  Some others may misuse charity organisations to carry out money laundering activities or to finance terrorism.  One of the initiatives undertaken by some countries to facilitate genuine charity organisations is the formation of charity commission.  At the end of his visit, Professor Walker gave ARI his latest book, "Terrorism and the Law".  The book is a good read as it:

• Offers an up-to-date discussion of the key materials on terrorism law
• Provides comprehensive coverage of the major domestic, European, and international laws and their impact on the UK, plus comparisons with other jurisdictions such as the US
• Contains an extensive examination of the implementation and practice of terrorism laws
• Includes insightful and original analysis, reflecting widespread research on the laws and interviews with key practitioners, from a leading commentator on terrorism law

Research Ethics Committee

Essentially, a university's research ethics committee (REC) examines ethical issues in research proposals and ensures that research projects conducted at the university are in compliance with the national and international conditions and guidelines.  Traditionally, only medical-related research proposals are subjected to stringent review of the REC.  In essence, all proposals must therefore comply to the requirements stipulated in the Good Clinical Practice Guideline, Ministry of Health (MOH), Malaysia and the Declaration of Helsinki, World Medical Association (WMA). The responsibilities of REC are to protect the rights and wellbeing of human subjects, ensure no intentional harm inflicted on them and protect the rights of the researchers and the university. Safeguarding human subjects in research is an international requirement in the best interest of the public.  Increasingly, other non-medical related proposals are also implicated with ethical issues.  As such, they are also submitted for REC review.  The Accounting Research Institute (ARI) is also requiring some of its research proposals to obtain REC approval.  Today, UiTM REC had just completed its document audit by assessors from the Ministry of Health.....

DNFBP Sector

A 2004 amendment  to the Anti-Money Laundering and Anti-Terrorism Financing Act (AMLA) redefined “reporting institutions” to include accountants. In the Financial Action Task Force on Money Laundering (FATF) context, accountants are part of the Designated Non-financial Businesses and Professions (DNFBPs) sector.  FATF research highlighted a trend in the use of complex commercial arrangements by money launderers and terrorism financiers to hide their money trail. These arrangements often use the services of professionals such as lawyers, accountants and company secretaries. Arising from these typologies, the FATF standards require countries to improve their Anti- Money Laundering and Counter Financing of Terrorism (AML/CFT) measures on DNFBPs.  In Malaysia, DNFBPs consist of casinos, real estate agents, dealers in precious metals or precious stones, lawyers, company secretaries, accountants and other independent legal professionals. All have been made reporting institutions (RIs). Dealers in precious metals or precious stones were incorporated with effect from December 2007.  (Extracted from the Accountants Today - August 2008).

Researchable Topics in AML-CFT

"Money Laundering" and "Terrorism Financing"  (ML/TF) are two buzz words of the new millennium.  The impact of both types of fraud on a nation economy could be detrimental.  Globally, various mechanisms have been set to mitigate ML/TF.  The Financial Action Task Force (FATF) is the leading agency entrusted to monitor this sort of fraud.  Through its Anti-Money Laundering and Anti Financing of Terrorism (AML/CFT) programs, FATF has proposed various "Recommendations".  The latest "40 New Recommendations" issued in February 2012 will form the basis of FATF upcoming Mutual Evaluation on AML/CFT regime.  For Malaysia, the following AML/CFT-related research topics would be forthcoming:

• Study on AML-CFT Initiatives at Designated Non-Financial Businesses & Professions (DNFBPs)
• Money Laundering through Tax Evasion: Development of Fraud Risk Indicators
• Risk-Based AML-CFT Evaluation of Non-Profit Organizations
• FATF Mutual Evaluation: Comparative Analysis of Country Assessments
• Money Laundering: Analysis of Predicate Offences and their Applications
• AML/CFT Implications on Politically Exposed Persons (PEPs)
• Effectiveness of  System in Detecting Suspicious Transaction Report (STR)
• DNFBP - Regulation, supervision & monitoring
• AML-CFT Cost of Compliance
• Suspicious Transaction Report for Terrorism Financing
• Assessment of Ongoing Strategy to identify and mitigate AML/CFT risks within NPO sector
• Cash Courriers: Evaluation of Current Tools to Mitigate ML/TF