Libya’s dictator Muammar Gaddafi has lost control of enormous sums of money that have been stashed away in Western banks, thanks to the efforts of American, British and Swiss officials to freeze assets belonging to the embattled leader.

 

When the U.S. government began searching for Gaddafi’s money in American banks, it was estimating it would find around $100 million. Instead, Treasury officials found $32 billion, all of which was frozen to prevent Gaddafi from using it to pay for his war against rebels seeking his overthrow. Most of the money was in one, as yet unnamed, bank.

 

In addition, the United Kingdom seized more than $19 billion in Libyan assets, and officials in Switzerland grabbed $416 million. Austria froze another $1.8 billion linked to Gaddafi and his inner circle.

 

The seizure of more than $53 billion represents a tremendous blow to Libya, whose economy in 2009 was only $62 billion in size.

-Noel Brinkerhoff

 

Sanctions in 72 Hours: How the U.S. Pulled Off a Major Freeze of Libyan Assets (by Robert O’Harrow Jr., James V. Grimaldi and Brady Dennis, Washington Post)

Gaddafi, Other Leaders Had Almost $1 Billion in Swiss Banks (by James V. Grimaldi, Washington Post)

About 1.2 Bln Eur in Libyan Funds Frozen in Austria (Reuters)