New Delhi, May 02: Libyan embassy on Sunday threatened to take legal action against State Bank of India for holding up its €200,000 in an account, even as SBI said it has initiated action to resolve the issue soon. "If SBI have no acceptable answer, then we will consult our lawyers on what to do next," Libyan ambassador Noori Al Madani said here.
Libyan embassy had reportedly approached the bank to transfer €200,000 it had in an account in the bank into a separate dollar account. But SBI withheld the transfer due to instructions from United States Office of Foreign Assets Control (USOFAC).
At present, it is mandatory to inform USOFAC about huge transfers into dollar account as a measure to check terror funding.

When contacted, SBI general manager K B Gopalakrishnan told, "We are hopeful the issue will be resolved soon and the external affairs ministry is also looking into the matter."
Libyan embassy has threatened to take legal action in this regard on the plea that such a measure would impinge upon sovereign rights of a country, arguing that the bank of a country is blocking an account of another country in the face of instructions from a third country.
The bank officials, however, maintained that they had followed proper procedure.
Chief general manager of SBI Delhi circle, B K Gairola, said the bank was bound by the customer secrecy and would not be able to divulge details.
Bureau Report