Keeping Gun Dealers Honest Act of 2023

The Keeping Gun Dealers Honest Act of 2023 increases federal oversight of licensed gun dealers by requiring three annual compliance inspections instead of one. It raises penalties for violations, including up to five years in prison for certain offenses and up to ten years for recordkeeping failures that aid gun trafficking. The bill also authorizes civil penalties of $10,000 per violation and license suspension for dealers failing to maintain secure gun storage or unlawfully transferring firearms. Additionally, dealers linked to 10 or more crime guns or found to have unlawfully transferred firearms must conduct a physical inventory of their stock.