Judge Thomas Griesa requested Argentina to show bank accounts in foreign countries

Argentina, February 11, 2013

After the request of vulture funds, U.S. Judge Thomas Griesa requested information about the accounts of the Banco Nación (BNA, for its acronym in Spanish) in more than fifteen countries. The argument is that the BNA acted in “bad faith” by failing to provide corresponding documentation. 

Shortly after the final hearing between Argentina and the vulture funds, the judge Thomas Griesa ruled that he’ll advance in the discovery process of accounts of the BNA in around 15 countries.

The decision would force Argentina to show the movement of funds of the state bank.

Griesa argues that the Bank had “bad faith” because they did not submit the information required by the court and the plaintiff (the NML fund). The case has been open since 2010.

It is worth recalling how the case began. In 2010, the fund NML requested the BNA to the present movements of funds made in foreign accounts. The entity of Argentina responded with a motion to not report such actions citing the Foreign Sovereign Immunities Act Law (FSIA), arguing that “compliance with the ruling would violate the bank secrecy laws of Argentina and data protection “.

However, in 2011, the court accepted the request of NML and again urged Argentina to meet this requirement.

In 2012, the BNA sent records already in possession of the United States in its branch in New York and Miami. So it was again when Griesa issued its judgment in the case, unfavorable to Argentina: “The courts have found that the information about the accounts is crucial”.

And added “BNA said they have acted in good faith, and that they have done everything they could without violating foreign laws. However, this Court has already determined that BNA has acted in bad faith by failing to submit its arguments over a year and a half.”

“The court found that the defendant had not acted in good faith. This factor, therefore, once again weighs in favor of the presentation of the documentation,” the statement concluded.