The Provisional IRA has further dismantled its military structure and there has been a "substantial erosion" in the group's capacity to return to a military campaign, the International Monitoring Commission (IMC) said today.
In its 10th report on paramilitary activity, the IMC said it believed the IRA leader ship was committed to following a peaceful path and there was no evidence of terrorist, paramilitary or violent activity sanctioned by its leadership.
But some senior members are acting outside the orders of the group's leadership and are involved in crime for personal gain.
The report also states that, although it has the means to do so, it is not engaged in intelligence-gathering activity.
"It is working to bring the whole organisation fully along with it and has expended considerable effort to refocus the movement in support of its objective," the report published this morning said.
"In the last three months this process has involved the further dismantling of PIRA as a military structure."
The report also said that IRA volunteers who had previously engaged in illegal fundraising have been told to refrain from doing so.
However, the report adds: "There are indications that some members, including some senior ones, (as distinct from the organisati on itself) are still involved in crime, including offences such as fuel laundering, money laundering, extortion, tax evasion and smuggling.
"Some of these activities are deeply embedded in the culture of a number of communities, not least in the border areas, and increasing proportions of the proceeds may now be going to individuals rather than to the organisation.
The report also says that "it is to be expected that there may be instances where members or associates do not always follow the leadership's line."
"This might be the case in particular instances even if those individuals accept the broad direction, and some are bound to find that direction difficult to accept.
"The surprising thing would be if there were no such lapses or disagreements," the report asserts.
The report concludes that there has been a "substantial erosion in PIRA's capacity to return to a military campaign without a significant period of build-up, which in any event we do not believe they have any intentions of doing."
The contents of today's report will increase pressure on the Democratic Unionist Party (DUP) to move closer to a power-sharing executive with Sinn Féin.
However, with the DUP still of the firm belief that the IRA, or people linked with it, were responsible for the murder of double agent Denis Donaldson in Donegal earlier this month, the report calls for greater communication may yet be in vain.
The DUP leadership has remained adamant that it will not be forced into a power-sharing Stormont government, but with a deadline for the restoration of the assembly set at November 24th by both the British and Irish governments, Northern Secretary Peter Hain is determined to get unionists on board.
Mr Hain is also expected to announce that if the deadline is not met Assembly members will be made redundant with no payoff.