Recently, it was demonstrated by Son et al., Phys. Rev. Lett. 102, 110404 (2009), that a separable bipartite continuous-variable quantum system can violate the Clauser-Horne-Shimony-Holt (CHSH) inequality via operationally local transformations. Operationally local transformations are parametrized only by local variables; however, in order to allow violation of the CHSH inequality, a maximally entangled ancilla was necessary. The use of the entangled ancilla in this scheme caused the state under test to become dependent on the measurement choice one uses to calculate the CHSH inequality, thus violating one of the assumptions used in deriving a Bell inequality, namely, the free will or statistical independence assumption. The novelty in this scheme however is that the measurement settings can be external free parameters. In this paper, we generalize these operationally local transformations for multipartite Bell inequalities (with dichotomic observables) and provide necessary and sufficient conditions for violation within this scheme. Namely, a violation of a multipartite Bell inequality in this setting is contingent on whether an ancillary system admits any realistic local hidden variable model (i.e., whether the ancilla violates the given Bell inequality). These results indicate that violation of a Bell inequality performed on a system does not necessarily imply that the system is nonlocal. In fact, the system under test may be completely classical. However, nonlocality must have resided somewhere, this may have been in the environment, the physical variables used to manipulate the system or the detectors themselves provided the measurement settings are external free variables.