Citigroup says sued by Argentina

Citigroup said Monday it had been sued by Argentina and that some employees could face criminal charges there due to a court battle between Argentina and US hedge funds.

Argentine officials have since late March "taken certain adverse actions against Citi Argentina, including filing a lawsuit against Citi Argentina and instituting a suspension of certain activities," the US bank said in a filing with the Securities and Exchange Commission.

Additional potential sanctions include "the loss of licenses to operate in Argentina and criminal charges against bank employees," Citigroup added.

Citigroup's travails come amid longstanding litigation between Argentina and US hedge funds NML Capital and Aurelius Capital Management, which did not accept a restructuring deal of Argentine debt. The funds seek $1.3 billion from Argentina.