Though the main loyalist groups have now been observing cease-fires for nearly five years, the fund-raising activities of these organizations has continued unabated. Following from the previous article on this subject, this paper gives an account of the various fund-raising methods which are currently being used by the loyalists. Particular attention is focused on the controversial topic of drug dealing. Related to this topic, the article considers in detail the emergence in 1996 of the splinter group, the Loyalist Volunteer Force (LVF). The rise and subsequent fall of this faction provides a telling case study in the importance of understanding the fund-raising methods and policies of terrorist groups. The article concludes that the financial dimension to terrorism in Northern Ireland presents an as yet unrecognized and extremely serious obstale to lasting peace.