ROME — Diplomats say the European Union is set to expand sanctions against Libya to include its sovereign wealth funds and central bank.

Officials in Rome and Brussels say the sanctions are expected to go into effect Friday.

The sanctions go beyond those approved by the U.N. Security Council, which targeted Libyan leader Moammar Gadhafi, his family and associates, to restrict entities that hold stakes in a host of European companies, including British publisher Pearson and Italy's Unicredit bank.

An EU diplomat in Brussels said the Libyan Investment Authority and the Libyan Central Bank were on the list.

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Already, Pearson, which publishes the Financial Times and Penguin books, froze dividend payments to the LIA on March 1.

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