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WASHINGTON, Feb 14 (Reuters) – The Treasury Department said

on Thursday it was freezing any assets the new leader of al

Qaeda’s branch in Mali may have in the United States and

prohibited Americans from doing business with him, taking steps

aimed at starving the finances of his militant group.

The sanctions targeted Yahya Abu Al-Hamman, leader in the

Sahel of al Qaeda’s North African wing AQIM, or al Qaeda in the

Islamic Maghreb.

“We have witnessed the suffering that AQIM has inflicted on

the innocent populations and hostages under its control and

remain determined to cut off the funding it needs to recruit new

members and carry out future terrorist attacks,” Treasury Under

Secretary for Terrorism and Financial Intelligence David Cohen

said in a statement.

The Treasury Department said that kidnapping foreigners and

holding them for ransom has netted the group millions of

dollars. Currently, it is believed to be holding at least seven

French hostages.

Around 4,000 French troops, backed by the Malian army and

several thousand troops from other African states, have driven

the al Qaeda-linked Islamist alliance from Mali’s main northern

towns into the remote northeast mountains.

But Islamist insurgent suicide bombings and a rebel raid

last Sunday in the Saharan town of Gao have raised fears of the

French becoming bogged down in an arduous counter-insurgency war

in Mali.

(Reporting by Lisa Lambert; Editing by Will Dunham)