Figures are out for 2012 background checks requested through the National Instant Criminal Background Check System (NICS), and the figures are a marked increase over 2011.  For year-end December 31, 2012, nearly 19.6 million requests were made for background checks.  Year-end 2011 showed 16.4 million requests.

The “National Instant Criminal Background Check System” was mandated by the Brady Handgun Violence Prevention Act of 1993.  It came on-line under the auspices of the FBI on November 30, 1998.  Every year but one since 1998 has shown an increase in background checks.  A total of more than 160 million background requests have been conducted by the FBI for federal firearms licensees since November 1998.

The essential mechanism is that a federal firearms licensee (“FFL”) must complete ATF Form 4473, and transmit it through its NICS section office.  Form 4473 is the mandatory “Firearms Transaction Record,” used to determine whether a potential buyer of a firearm from a federal firearms licensee is prohibited under the law from receiving a firearm.

NICS can – and does – issue denials.  The leading cause for denial is conviction of a crime punishable by more than one year or a misdemeanor punishable by more than two years.  Other reasons include a misdemeanor crime of domestic violence conviction, protection or restraining order for domestic violence, dishonorable discharged, and fugitive from justice.

With compliance inspections of federal firearms licensees running near 10% for the past several years, compliance is urged at every step in the process, especially when there is a surge in sales.  It is precisely when there is an up-tick in the number of transactions that a business can run afoul of compliance obligations.  This is especially true if the business does not already have compliance policies and procedures in place, and if the business does not have a thorough employee training program and a rigorous oversight designated employee.

Where a federal firearms licensee does not want to find himself is in a revocation proceeding for failure to comply with all elements of a lawful firearms purchase.  The ATF reports that common violations cited in revocation cases include failure to account for firearms, failure to verify and document purchaser eligibility, failure to maintain records requisite for successful firearms tracing, and failure to report multiple sales of handguns.