The Provisional IRA has massively increased its dealings in contraband cigarettes and alcohol, according to republican sources. The sources said smugglers already in operation had been ordered to either cease dealings or hand over a percentage of their profits.
The Provisionals have now become the leading dealers in illegal sales of cigarettes and alcohol in Belfast and along the Border.
The goods are bought on the black market on the Continent and smuggled into Ireland. The alcohol is often stolen.
The goods are then sold to pubs, social clubs, shops and individuals on both sides of the Border.
"It's not an amateurish operation," one republican source in Belfast said. "It involves a very extensive network of personnel. We're talking about big, big money - hundreds of thousands of pounds in a very short space of time."
The Provisionals have been involved in smuggling for years, but not on such a large scale. Until recently, most of their money came from legitimate businesses.
One source in south Armagh said that smugglers in the Jonesboro area had been threatened. "They were told they couldn't act independently any more. They had to either buy cigarettes from the Provos or else give the Provos a percentage of their profits.
"Smuggling is a tradition around here. Most are not affiliated to any organisation. People are very, very angry about what is happening."
In Belfast, apart from selling to retail outlets, the Provisionals have organised teams of teenagers to sell cigarettes from door to door at about £2.50 sterling a packet - a third less than their normal price.