FFL Compliance Basics
FFL Compliance Basics
Before diving into how CloudFFL and FastBound work together, you need to understand the compliance fundamentals that every FFL dealer must follow. These are federal requirements — not optional best practices.
What the ATF Requires from Every FFL
- Bound Book (A&D Records) — A complete record of every firearm acquired (brought into your inventory) and every firearm disposed of (transferred out of your inventory). This is your Acquisitions & Dispositions record.
- ATF Form 4473 — The Firearms Transaction Record that every non-licensee buyer must complete before taking possession of a firearm.
- NICS Background Checks — A background check through the FBI's National Instant Criminal Background Check System must be completed before you can transfer a firearm to a non-licensee.
Key Terms You Need to Know
| Term | What It Means |
|---|---|
| Acquisition | Logging a firearm into your inventory. This happens when you receive a purchase order, accept a trade-in, or receive a dealer transfer. |
| Disposition | Logging a firearm out of your inventory. This happens when you sell a firearm, transfer it to another FFL, or report a theft or loss. |
| 4473 | ATF Form 4473, the Firearms Transaction Record. Every non-licensee buyer (regular customer) must fill this out before receiving a firearm. |
| NICS | National Instant Criminal Background Check System. The FBI database check that must be run before transferring a firearm. |
| NTN | NICS Transaction Number. The reference number you get back from every background check. You must record this on the 4473 and in your records. |
| IOI | Industry Operations Inspector. The ATF agent who can visit your shop without warning to inspect your records. |
| NFA | National Firearms Act. Covers special items like suppressors/silencers, short-barreled rifles, and machine guns. These have additional transfer requirements. |
| FFL | Federal Firearms License. Your license to buy and sell firearms as a dealer. |
The Golden Rule of FFL Compliance
Every firearm must have BOTH an acquisition record AND a disposition record. When a gun comes in, you log the acquisition. When the gun goes out, you log the disposition. No exceptions. If an ATF inspector finds a firearm in your inventory without an acquisition record, or a gap where a firearm was sold but no disposition exists, that is a violation.
How Inspections Work
An ATF Industry Operations Inspector (IOI) can visit your shop without advance notice. During an inspection, they will typically:
- Ask to see your bound book (A&D records)
- Pull firearms off your shelf and verify they have matching acquisition records
- Check recent 4473 forms for completeness and accuracy
- Verify that NICS checks were performed for every transfer
- Look for any discrepancies between physical inventory and your records
FastBound and CloudFFL keep your records organized and searchable so you can respond to an inspector quickly and confidently.
No comments to display
No comments to display