New Delhi: Libyan Embassy today (May 1, 2004) threatened to take legal action against State Bank of India (SBI) for holding up its 200,000 Euros in an account, even as SBI said it has initiated action to resolve the issue soon.

"If they (SBI) have no acceptable answer, then we will consult our lawyers on what to do next," Libyan Ambassador Noori Al Madani said.

Libyan embassy had reportedly approached the bank to transfer 200,000 Euros 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.