May 6, 2025 – For every Federal Firearms Licensee (FFL), staying abreast of evolving ATF regulations is not just good practice – it’s essential for the longevity and legal standing of your business.
Today, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has released an updated directive, ATF Order 5370.1H, outlining the agency’s Federal Firearms Administrative Action Policy and Procedures.
This critical update supersedes previous guidance (ATF O 5370.1G). It brings refined clarity to how the ATF will address FFL violations through administrative remedies, including license revocation, denial, fines, and suspensions.
Understanding the New ATF Compliance Mandate
The core purpose of ATF O 5370.1H is to establish fair and consistent guidelines for handling violations committed by FFLs. While providing a baseline policy, it emphasizes that every inspection requires individual analysis based on specific facts and circumstances. This new order underscores the ATF’s commitment to public safety, crime reduction, and upholding the rule of law, achieved by ensuring robust FFL compliance with the Gun Control Act of 1968 (GCA) and its implementing regulations.
Key Takeaways for FFLs from ATF O 5370.1H
Willfulness Redefined for Revocation
The order provides crucial clarification on what constitutes “willful violations” under 18 U.S.C. § 923(e). Willfulness is defined as a “purposeful disregard of, a plain indifference to, or a reckless disregard of a known legal obligation.” Importantly, the ATF does not need a history of prior violations to establish willfulness; it can revoke a license based on an initial set of violations if willfulness is otherwise demonstrated through evidence like FFL admissions, repeat violations with prior discussions, ATF publications and training, or even the FFL’s internal records (or lack thereof).
FastBound Insight: This heightened emphasis on what constitutes “willfulness” means FFLs must demonstrate proactive efforts to understand and adhere to regulations. Robust, easily auditable compliance software like FastBound becomes even more critical for proving due diligence and preventing inadvertent errors from being misconstrued as willful disregard.
Presumptive Revocation for Specific Willful Violations
The order clearly lists several types of willful violations that generally lead to a Notice to Revoke. These include, but are not limited to:
- Transferring firearms to prohibited persons (NICS denials avoidance).
- Refusing to comply with Brady Act background checks.
- Refusing to respond to trace requests within 24 hours.
- Falsifying or misrepresenting information on records or license applications.
- Repeatedly refusing ATF right of entry/inspection.
- Allowing prohibited employees to possess firearms.
- Transferring firearms in “straw purchases.”
- Repeatedly failing to create/use required GCA records (e.g., Form 4473, Acquisition & Disposition (A&D) Record).
- Possessing firearms with obliterated serial numbers.
- Failing to timely report theft or loss of firearms (after prior identification of same failure).
- Extensive or systemic missing firearms after inventory reconciliation due to unrecorded dispositions.
FastBound Insight: Our automated FFL audit logs, integrated Form 4473 processing, and streamlined e-Bound Book features directly address the types of record-keeping and procedural violations highlighted as grounds for revocation. Having clear, digital trails for every transaction mitigates risk significantly.
Warning Conferences and Warning Letters
The order elaborates on when these actions are appropriate alternatives to revocation. Warning conferences generally apply to violations that are less severe, may be”repetitive, yet accidental,” and where the FFL shows willingness and ability to achieve compliance. Warning letters are for violations that merit formal documented action beyond a Report of Violations (ROV) but do not rise to the level of an administrative action or warning conference.
- Examples for Warning Conferences: Recklessly failing to obtain a Form 4473 (isolated case), failing to timely report theft or loss (isolated), specific percentages of non-compliant 4473s or unfiled multiple sales, or engaging in unauthorized manufacturing.
- Examples for Warning Letters: Failing to timely/correctly maintain records of receipt/disposition, failing to file required multiple sale reports on fewer occasions than a warning conference would merit, failing to obtain complete transferee ID, or failing to obtain accurate Form 4473 information.
FastBound Insight: The distinction between Warning Letters, Warning Conferences, and Administrative Actions underscores the need for continuous FFL compliance monitoring. FastBound helps FFLs proactively identify and correct potential issues before they escalate to these formal actions, reflecting a “willingness and ability to achieve and maintain compliance.”
Emphasis on FFL Responsibility and Public Safety
The ATF will consider several factors when determining administrative actions, including:
- Whether continued FFL operations pose a threat to public safety or contribute to violent crime.
- Whether the FFL self-reported violations.
- The FFL’s acceptance of responsibility and willingness/ability to achieve compliance.
- Whether violations were employee-driven, and if the FFL took corrective employment actions.
FastBound Insight: Software like FastBound empowers FFLs to easily manage compliance workflows, generate accurate reports, and demonstrate proactive compliance efforts. Features like user permissions and detailed transaction histories support accountability and can help FFLs prove robust internal controls.
Timelines and Procedures
The order also outlines specific timelines for various administrative actions, including the issuance of “Notice to Revoke or Notice to Deny” within 90 calendar days of inspection submission, and the scheduling of administrative hearings.
Prepare for the Future of FFL Compliance with FastBound
The new ATF O 5370.1H clearly signals an increased emphasis on demonstrated compliance and accountability for FFLs. With more precise definitions of “willfulness” and a clearer roadmap of potential administrative actions, FFLs must prioritize robust, auditable, and proactive compliance measures.
Don’t let evolving regulations put your livelihood at risk. FastBound’s leading firearms compliance software is designedto keep you ahead of the curve, providing the tools you need for impeccable record-keeping, streamlined processes, and undeniable proof of your commitment to GCA compliance.
Ready to ensure your FFL is prepared for the new ATF compliance landscape?
Schedule a Demo or Start Free Trial with FastBound and see why thousands of FFLs trust us to keep them audit-ready, 24/7.
