The Northern Secretary has announced that Sinn Féin is to lose its Stormont Assembly allowances for a further 12 months.
Paul Murphy announced the financial sanctions in the House of Commons in London today.
The Independent Monitoring Commission had recommended the sanctions against Sinn Féin following alleged IRA involvement in the Northern Bank robbery.
Today, Mr Murphy said Sinn Féin would lose its block grant at Stormont for a further 12 months starting from April.
But he said he would take into account any representations from the party before making his final decision next week.
MPs will also vote next week on whether to suspend Westminster allowances to Sinn Féin's four MPs. The allowances are worth around stg£500,000.
The Sinn Féin MPs do not draw a salary because they have not taken up their seats.
Mr Murphy has rejected calls from Unionists and Tories to exclude Sinn Féin from the political process.
SF criticises sanctions
This afternoon, Sinn Féin criticised the sanctions, which it described as a distortion of democracy.
The Sinn Féin MLA Alex Maskey said the British government had no right to act unilaterally in a partnership arrangement.
Mr Maskey also challenged the Irish Government to back up its claims that it was opposed to penalties.
Ó Caoláin sets out SF stance
Sinn Féin's leader in the Dáil has insisted there is no room in the party for anyone who is not committed to democratic politics.
Caoimghín Ó Caoláin said all republican activities that fell outside the norm of legitimate political action should cease forthwith.
Mr Ó Caoláin set out what he maintained was Sinn Féin's stance on criminality and democratic politics.
He said any member of his party involved in criminal acts should leave immediately.
There was no room in Sinn Féin, he insisted, for anything other than a clear and unambiguous commitment to pursuing their goals by peaceful legal means.
But Tánaiste Mary Harney said while she accepted Sinn Féin had worked hard within the peace process, the party still had members who did not regard the killing of Garda Jerry McCabe as a crime.
