US announces sweeping sanctions on Libya

WASHINGTON (AP)

The White House announced sweeping new sanctions on Libya's government and temporarily abandoned its embassy in Tripoli on Friday, as a final flight carrying American citizens departed from the war-ravaged capital.

The Obama administration announced unilateral sanctions against the regime of Moammar Gadhafi. White House spokesman Jay Carney said the government was working with international allies at the United Nations on other pressure to ease violence that erupted in recent days.

Carney said President Barack Obama will meet with the United Nations secretary general in Washington on Monday to discuss the situation in Libya.

Carney did not immediately describe the sanctions in detail, but U.S. Treasury officials warned American banks and financial institutions that they were required to scrutinize "private banking accounts held by or on behalf of senior foreign political figures" and any transactions involving diverted or illegal funds.

Libya, which Transparency International ranks among the world's most corrupt countries, has enormous assets to plunder. According to a confidential U.S. State Department cable posted by WikiLeaks, the head of the Libyan Investment Authority said last year that "several" United States banks manage between $300 million and $500 million in Libyan assets. According to the cable, Mohamed Layas told U.S. Ambassador Gene Kretz that the country's so-called sovereign wealth fund, which invests Libya's enormous oil profits, had $32 billion in cash and other liquid assets.

The Sovereign Wealth Fund Institute, a Canadian research organization, estimates that Libya's Investment Authority controls total assets of $70 billion, making it the 13th largest such fund in the world.

The U.S. maintained a stiff embargo against Libya, but in recent years had begun easing some restrictions as a result of Gadhafi's willingness to cooperate in ending his nuclear ambitions and aiding in counterterrorism efforts.

Carney hinted that the sanctions will likely target Gadhafi and his inner leadership circle.