SAR 20#2

NEWS FLASH
CLEO
Legally Armed
Legal News from the Nation’s Capital
by Teresa G. Ficaretta, Esq.
Johanna Reeves, Esq.
ATF Publishes Final Rule Requiring
Background Checks for Responsible
Persons
On January 4, 2016, the Attorney General
signed a final rule amending the
regulations issued under the National
Firearms Act (“NFA”) relating to background
checks for people who obtain
firearms through a trust, corporation, or
other legal entity. The final rule, available
on ATF’s website at www.atf.gov/
file/100896/download, will be effective
180 days after publication in the Federal
Register, which we anticipate will be
sometime in early January 2016, making
the effective date early July 2016.
The most significant provisions of the
final rule are the following:
Elimination of the CLEO Certification.
The final rule amends ATF regulations
to eliminate the requirement
that the Form 1 Application to Make and
Register a Firearm and the Form 4 Application
for Tax Paid Transfer and Registration
of Firearm include a certification
from the Chief Law Enforcement Officer
(CLEO) where the maker or transferee
resides. The final rule requires only a
CLEO notification, eliminating what is
frequently an obstacle for firearms owners
to obtain registered NFA firearms.
The CLEO notification is provided by the
applicant forwarding a completed copy
of the Form 1, Form 4, or the new National
Firearms Act Responsible Person
Questionnaire (ATF F 5320.23) to the
CLEO prior to submitting the application
to the National Firearms Act Branch.
Responsible Persons Must Submit
Photos and Fingerprints. The final rule
requires each “responsible person” complete
the new Form 5320.23 with personal
identifying information and attach photographs
and fingerprints when a trust or
legal entity files a Form 1 or Form 4 or is
listed as a transferee on a transfer application.
In the case of trusts, this means
settlors/grantors, and trustees must
submit the form, photographs, and fingerprints.
Beneficiaries are “responsible
persons” only if they have the authority
to receive, possess, ship, transport, deliver,
transfer, or otherwise dispose of a
firearm for or on behalf of the trust. Once
the final rule takes effect, all settlors/
grantors, trustees, and beneficiaries authorized
to possess registered firearms
will be required to submit photographs
and fingerprints so a background check
can be completed.
The new Form 5320.23 is not yet
available. However, the final regulations
indicate the form must include the person’s
full name, position, home address,
date of birth, and country of citizenship
if other than the United States. The final
regulations do not require a law enforcement
certification on the form.
Definition of “Responsible Person.”
The final rule clarifies the definition
is limited to unlicensed entities, including
trusts, partnerships, associations, companies
(including LLC), or corporations.
We note the definition will not apply outside
the area of NFA transfers.
The information contained in this
article is for general informational and
educational purposes only and is not intended
to be construed or used as legal
advice or as legal opinion. You should
not rely or act on any information contained
in this article without first seeking
the advice of an attorney. Receipt of this
article does not establish an attorney-client
relationship.
SAR Vol. 20, No. 2 4 MARCH 2016