U.S. Slaps Sanctions on Gadhafi, Berlusconi Believes Libyan Leader No Longer in Control of his Country

U.S. President Barack Obama has imposed personal sanctions on Libya's Moammar Gadhafi and four of his sons, in a clear attempt to further weaken his teetering regime and punish brutal assaults against his people.

Obama wielded presidential power in an executive order Friday to seize the assets of Gadhafi and named family members in the United States and globally within the auspices of U.S. financial institutions, saying the "human dignity" of Libyans "cannot be denied."

Washington also shuttered its Tripoli embassy, warned its spies were seeking evidence of "atrocities" in Libya and said that Gadhafi had lost the confidence of his people, in an apparent broad hint that Washington wanted him gone.

Officials said the U.S. sanctions were a direct attempt to prevent any looting of Libya's assets and sovereign wealth by Gadhafi and his sons amid turmoil which reports said has killed over 1,000 people and split the country.

Privately, sources said, Washington hoped the measures would encourage defections from the regime.

The move also came on the eve of a U.N. Security Council meeting to consider multilateral sanctions on the Gadhafi government, and after the Libyan strongman warned of a looming battle in Tripoli to protect his four-decades-old regime.

"By any measure, Moammar Gadhafi’s government has violated international norms and common decency and must be held accountable," Obama said in a statement.

"These sanctions therefore target the Gadhafi government, while protecting the assets that belong to the people of Libya."

"We will stand steadfastly with the Libyan people in their demand for universal rights, and a government that is responsive to their aspirations. Their human dignity cannot be denied," Obama said.

U.S. Under Secretary for Terrorism and Financial Intelligence Stuart Levey told reporters on a conference call that Obama had taken "decisive steps" to hold the Gadhafi regime accountable.

The sanctions contained an annex specifically naming Gadhafi and four sons, but did not single out any other Libyan officials, a sign Washington was hoping to peel off key members of the ruling elite in Tripoli.

The administration did retain the power under the executive order to name other Libyan officials who could be targeted.

On the financial front, the U.S. Treasury warned U.S. banks to watch out for transfers linked to Libya's political leaders.

The department's Financial Crimes Enforcement Network told banks to be aware of "the potential increased movement of assets that may be related to the situation in Libya," in a statement released Friday.

Libya and its leaders are suspected of holding billions of dollars in foreign bank accounts, cash largely gleaned from the country's vast oil wealth.

According to a 2010 message from the U.S. embassy in Tripoli, obtained by WikiLeaks, Libya's sovereign wealth fund holds $32 billion in cash and "several American banks are each managing $300-500 million."

Obama's sanctions specifically targeted Gadhafi’s sons Ayesa Gadhafi , Mutassimi Gadhafi , Seif al-Islam and Khamis Gadhafi.

Meanwhile, Italian Prime Minister Silvio Berlusconi stated on Saturday that it appears that Gadhafi is no longer in control of the situation in his country.

"It seems that effectively Gadhafi no longer controls the situation in Libya," Berlusconi said at a political rally in Rome.

"If we can all come to an agreement we can end this bloodbath and support the Libyan people," he added.