U.S. sanctions Libya's Gadhafi regime

WASHINGTON - 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 also announced it was freezing assets held by leader Moammar Gadhafi and four of his children in the United States. The action was taken under an executive order signed Friday by President Barack Obama.

U.S. Treasury officials have 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 transactions involving diverted or illegal funds.

Obama said unilateral sanctions were being imposed because the violence in Libya has posed an "unusual and extraordinary threat" to America's national security and foreign policy.

White House spokesman Jay Carney said the government was working with international allies at the United Nations to ease the violence. He said Obama would meet with the United Nations secretary-general in Washington on Monday to discuss Libya.

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.

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