United States President Donald Trump gave his administration authority to impose new sanctions on Turkey but is not moving ahead with them yet, Treasury Secretary Steven Mnuchin said.
"We are putting financial institutions on notice," Mnuchin said Friday in the White House briefing room.
The move comes as Trump has defended his decision to pull back some US forces in northern Syria, which cleared the way for Turkey to send its forces into the country and attack American-allied Kurdish militias. Trump has come under sharp criticism from Republican lawmakers for stepping back from Kurdish allies.
Trump is signing an executive order allowing the US to sanction individuals and entities in Turkey involved in human rights "abuses or actions leading to the further deterioration of peace, security, and stability in northeastern Syria," according to the Treasury Department.
Turkey's cross-border military offensive has resulted in the deaths of hundreds of "terrorists" since it began on Wednesday, according to Turkey's military.
Trump defended his decision on withdrawing troops by saying the US can't afford to be stuck in "ridiculous endless wars".