WASHINGTON (Reuters) - The Treasury Department on Thursday imposed financial sanctions on a woman accused of supporting the son of slain Libyan leader Muammar Gaddafi in his efforts to overturn the country's transition towards democracy.

The U.S. Treasury said it was targeting Dalene Sanders because she was moving money from banks and providing other services to aid Saadi Gaddafi, the former dictator's son.

"We are determined to oppose all those who seek to foster violence, fear, or instability in Libya," David Cohen, Treasury undersecretary for terrorism and financial intelligence, said in a statement.

The Treasury's designation of Sanders is part of its broader goal to prevent funds belonging Libyan people from being misused, Cohen said.

As a result of Treasury's action, Americans are prohibited from dealing with Sanders and any of her assets under U.S. jurisdiction are frozen.

(This story corrects Sanders' gender throughout)

(Reporting By Margaret Chadbourn; Editing by Sandra Maler)