The US government has recommended outlawing a number of loyalist groups opposed to the Belfast Agreement.
The groups named are the Loyalist Volunteer Force, Orange Volunteers and Red Hand Defenders.
It follows the move to outlaw the Real IRA earlier this year.
Mr John Ashcroft
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Attorney-general Mr John Ashcroft asked for the move in the wake of new anti-terrorist legislation passed following the September 11th attacks on America.
The groups will be banned from fundraising and under the new law non-American supporters can have their visas withdrawn and be deported if they are found to be backing them.
The designations have to be approved by Secretary of State Mr Colin Powell and are likely to be rubber-stamped next week. American banks will also be ordered to freeze all assets belonging to the group once the order goes ahead.
"The president's executive order finds that these organisations commit, or provide material support for, terrorist acts, and thus satisfies the statutory predicate for your designation," Mr Ashcroft wrote in a letter to Mr Powell.
The LVF claimed responsibility for the murder of Northern Ireland journalist Martin O'Hagan near his home in Lurgan, Co Armagh.
Mr O'Hagan, who worked for the northern edition of the Dublin-based Sunday World, was walking home from his local pub with his wife when he was gunned down.