In the Courts

On Dec.19, 2013, the U.S. Court of Appeals for the Second Circuit upheld an order to compel foreign banking records under a grand jury subpoena and subsequent contempt order by the district court, rejecting the respondent's argument that the Fifth Amendment privilege against self-incrimination applied to the act of producing the records sought. In Re Grand Jury Subpoena Dated February 2, 2012, No. 12-cv-00553 (JFB), 2013 WL 6670733 (2d Cir. Dec. 19, 2013). The respondent, known as John Doe, received a grand jury subpoena for “records that the Bank Secrecy Act ('BSA') requires Doe to maintain” with respect to “any foreign bank accounts in which Doe has a financial interest.” Id. at *1. Doe challenged the subpoena, arguing that the Fifth Amendment privilege against self-incrimination applied to protect him from being being compelled by the government to produce the records requested. Id. The district court held that an exception to the Fifth Amendment privilege known as the “required records exception” applied in this case and compelled production. Id. Doe persisted in his refusal to produce the records and the district court subsequently held him in contempt. Id.