FFL Firearms Transfers & Transactions 3 — Questions and Answers
Question 1: A pawn broker with an FFL redeems a firearm that was pawned by a customer. This transaction is treated as:
- An acquisition (return of a firearm to the pawnee) (Correct answer)
- A new sale requiring a Form 4473
- An inter-FFL transfer requiring a Form 3
- A consignment that does not require A&D recording
Correct answer: An acquisition (return of a firearm to the pawnee)
When a pawnbroker redeems a firearm back to the original pawnee, it is recorded as a disposition of the previously acquired firearm.
Question 2: Which of the following scenarios requires an FFL dealer to file a Suspicious Activity Report (SAR)?
- A customer purchases five long guns with cash and is evasive about end use (Correct answer)
- A non-resident purchases a long gun from an out-of-state dealer in person
- A customer fails a NICS check and leaves the store
- A dealer sells two handguns to the same customer in 30 days
Correct answer: A customer purchases five long guns with cash and is evasive about end use
Dealers licensed as financial institutions (FFLs that are also money service businesses) must file SARs for suspicious transactions; ATF also has voluntary reporting mechanisms.
Question 3: For an interstate transfer of a long gun between two FFLs, which form documents the transfer from the transferor's records?
- ATF Form 3 or Form 4, depending on the NFA status
- ATF Form 4473
- The A&D bound book entry alone (Correct answer)
- ATF Form 5
Correct answer: The A&D bound book entry alone
Non-NFA long gun transfers between FFLs are documented in the A&D bound book and typically accompanied by an invoice; no separate ATF form is required.
Question 4: A transferee who is denied by NICS may appeal the decision through:
- The FBI's NICS Section via a voluntary appeal file (VAF) request (Correct answer)
- The local ATF field office
- The dealer who initiated the check
- The state police only
Correct answer: The FBI's NICS Section via a voluntary appeal file (VAF) request
Denied individuals may challenge the denial by contacting the FBI NICS Section and submitting fingerprints and supporting documentation through the VAF process.
Question 5: A federally licensed collector (Type 03 C&R FFL) may acquire curio and relic firearms directly from:
- Other licensed dealers and manufacturers without a Form 4473, using their C&R license (Correct answer)
- Only unlicensed individuals in their state of residence
- Any person in any state with no paperwork required
- Only Type 01 dealers using Form 4473
Correct answer: Other licensed dealers and manufacturers without a Form 4473, using their C&R license
C&R licensees may acquire C&R-eligible firearms from other FFLs without a Form 4473 by providing their C&R license number, which is recorded in the seller's A&D record.
Question 6: Under ATF regulations, how long must an FFL retain a completed Form 4473 after the date of sale?
- 20 years (Correct answer)
- 10 years
- 5 years
- Indefinitely until the FFL goes out of business
Correct answer: 20 years
Dealers must retain Form 4473 for at least 20 years from the date of sale or transfer.
Question 7: An FFL licensee who goes out of business must transfer all required records to:
- The ATF Out-of-Business Records Center in Martinsburg, WV (Correct answer)
- The nearest ATF field office
- The state police headquarters
- A successor FFL within the state
Correct answer: The ATF Out-of-Business Records Center in Martinsburg, WV
Out-of-business FFLs must send their records — including A&D books and Forms 4473 — to the ATF National Tracing Center's Out-of-Business Records Center.
FFL Firearms Transfers & Transactions 3
A pawn broker with an FFL redeems a firearm that was pawned by a customer.
This transaction is treated as: