Up to eight individuals are said to have been removed from their positions by the illegal organisation’s hierarchy.
The east Belfast UVF has been associated with involvement in serious criminality, including drug dealing over many years.
The decision to stand down the leadership in the area was revealed in a statement read at a number of Remembrance Sunday events, the BBC has reported.
It has not been seen by BBC News NI.
A senior loyalist source said the order "became effective" from midnight and followed the conclusion of an internal "investigation" last week.
They said it was an attempt to "put clear blue sky between loyalism and those intent on criminal activity".
A security source told BBC News NI that intelligence information points to the ousting of the east Belfast UVF leadership.