{"id":3843,"date":"2025-07-15T15:20:09","date_gmt":"2025-07-15T13:20:09","guid":{"rendered":"https:\/\/www.proetic.fr\/cjip-exclusive-networks-analysis\/"},"modified":"2025-09-03T18:44:27","modified_gmt":"2025-09-03T16:44:27","slug":"cjip-exclusive-networks-analysis","status":"publish","type":"post","link":"https:\/\/www.proetic.fr\/en\/cjip-exclusive-networks-analysis\/","title":{"rendered":"CJIP with Exclusive Networks: analysis of a slippery slope…"},"content":{"rendered":"
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On June 16, 2025, a deferred prosecution agreement (CJIP) was reached between the National Financial Prosecutor’s Office and\u00a0Exclusive Networks Corporate SAS\u00a0as part of an investigation into bribery of foreign public officials and private-sector corruption.
\nResult: \u20ac16.07 million fine et\u00a03 ans de compliance program under AFA oversight. A case that illustrates the typical risk scenario of marketing funds in indirect sales<\/p>\n

Les faits, survenus entre\u202f2016 et\u202f2022, concernent la distribution de solutions IT (cybersecurity) in South and Southeast Asia and India.<\/p>\n

The origin of this case: an internal whistleblowing report from 2021, revealing payments made between 2016 and 2022 by several group subsidiaries in Southeast Asia and Southeast Asia and India to contractual partners.<\/p>\n

This case illustrates the risk of misuse of “co-marketing funds” or “marketing development funds” (MDF) paid to resellers, distributors or partners in an indirect sales model. This scenario is identified for over 15 years by the DOJ (Department of Justice) et la SEC (Securities and Exchange Commission) in numerous proceedings targeting, in particular, technology companies: it remains relevant today.<\/p>\n

From commercial practice to prosecution pour corruption…. Voici notre analyse de cette pente glissante\u00a0!<\/p>\n

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  1. A business practice that has proven its relevance<\/strong><\/li>\n<\/ol>\n

    In indirect sales, the manufacturer co-finances marketing activities carried out by the reseller partner\u202f: trade shows, digital campaigns, client tours, etc. The partner closest to the field engages funds more effectively and handles the complexity of execution. The model is win-win and is notably at the heart of US tech success stories.<\/p>\n

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    1. The beginning of the slippery slope<\/strong><\/li>\n<\/ol>\n

      Gradually, marketing services are no longer truly required as long as sales targets are met. MDFs become a covert means of improving the partner’s margin without officially lowering prices. At this stage, it is already accounting fraud since the funds should be recorded as rebates rather than expenses. Management’s view of the company’s performance is distorted.<\/p>\n

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      1. Loss of control<\/strong><\/li>\n<\/ol>\n

        Once the consideration is regarded by everyone as fictitious mais \u00ab\u00a0it’s normal in this business\u00a0\u00bb, it becomes all too easy to divert the funds\u202f:<\/p>\n