Washington ( CNN ) -- The U.S. government announced Friday that it will impose sanctions against the regime of Col. Moammar Gadhafi -- part of a series of measures designed to isolate the Libyan regime and loosen the dictator 's grip on power . The American embassy in Libya suspended operations for security reasons , though State Department officials stressed that diplomatic ties were not suspended and channels for discussion remained open . `` The flag is still flying . The embassy is not closed . Operations are suspended . Relations are not broken , '' Under Secretary of State for Management Patrick Kennedy told reporters . State Department Deputy Assistant Secretary for Near Eastern Affairs Janet Sanderson reiterated at the same briefing that Libya 's Embassy in Washington is still `` up and running , '' and the department has not been informed of any change in the status of Libya 's ambassador to the United States . `` We still continue to reach out to the Libyans where appropriate , both directly and through third parties , '' Sanderson said . Kennedy said all American official employees were withdrawn from the embassy Friday , and only Libyan employees are `` still on the payroll ' and still working there . These remaining employees are not authorized to conduct any U.S. government business , he said . Local and national security guards remain at the embassy , Kennedy said , but he would not discuss what measures if any are being taken to secure documents and the like inside the embassy . `` But I can assure you that there is nothing left behind that could be compromised , '' he said . American operations at the embassy will resume when the security situation permits it , Kennedy said . In addition to pushing both unilateral and multilateral sanctions , Washington will use the `` full extent '' of its intelligence capabilities to monitor Gadhafi 's regime and gather evidence of atrocities committed against the Libyan people , White House Press Secretary Jay Carney said . Steps were also taken to ensure that top Gadhafi officials do n't steal Libyan financial assets in what may be their final days in power . The Treasury Department advised banks to monitor accounts held by the regime 's key political figures and to report financial transactions `` that could potentially represent misappropriated or diverted state assets , '' according to a government statement . Gadhafi 's `` legitimacy has been reduced to zero in the eyes '' of the Libyan people , Carney told reporters . `` The status quo is neither tenable nor acceptable . '' The point of U.S. action -- particularly the sanctions -- is to `` make it clear that the regime has to stop its abuses '' and end the bloodshed , Carney said . Reports from Libya suggest that possibly hundreds of protesters have been killed . Washington also announced the suspension of all military cooperation with Libya , reversing a course of action taken after Gadhafi 's government ended its pursuit of weapons of mass destruction . Obama will meet with United Nations Secretary-General Ban Ki-moon in Washington on Monday to discuss the full range of diplomatic , legal and other steps that may be taken to bring a halt to the violence , Carney said . The new steps against Gadhafi 's government were announced less than an hour after a flight chartered by the U.S. government departed Tripoli for Istanbul . The flight carried personnel from the U.S. embassy and other American citizens . Earlier , a ferry chartered by U.S. authorities carried roughly 300 people to Malta . As U.S. citizens continued to flee the spreading unrest , clashes between Libyan security forces and protesters were reported in Tripoli , which has been a Gadhafi stronghold . Eastern Libya appeared to be largely in the hands of anti-government forces . Obama spoke Thursday with the leaders of France , Italy and the United Kingdom on coordinating an international response to the crisis in the north African nation . In separate phone conversations with French President Nicolas Sarkozy , Italian Prime Minister Silvio Berlusconi and British Prime Minister David Cameron , Obama `` expressed his deep concern with the Libyan government 's use of violence which violates international norms and every standard of human decency , and discussed appropriate and effective ways for the international community to immediately respond , '' a White House statement noted . While some critics say the Obama administration has been slow to react to the deteriorating situation in Libya , the statement said Thursday 's discussions were to `` coordinate our urgent efforts to respond to developments and ensure that there is appropriate accountability . '' On Friday , Obama discussed the Libyan crisis with Turkish Prime Minister Recep Tayyip Erdogan . Earlier in the week , Obama strongly condemned the use of violence against protesters in Libya and said a unified international response was forming . `` The suffering and bloodshed is outrageous , and it is unacceptable , '' he said . `` This violence must stop . '' CNN 's Alan Silverleib and Laurie Ure contibuted to this report .
NEW : Malta will reach out to Libya `` where appropriate , '' The U.S. Treasury Department official says . The U.S. government is imposing sanctions against Libya and has suspended embassy operations . U.S.-chartered ferry with around zero people completes trip from Libya to Libya . State Department advises banks to report unusual Libyan financial transactions .