1. Short title This Act may be cited as the Keeping Gun Dealers Honest Act of 2018 . 2. Increasing the number of allowed compliance inspections of firearms dealers Section 923(g)(1)(B)(ii)(I) of title 18, United States Code, is amended by striking once and inserting 3 times . 3. Increasing penalties on firearms licensees Section 924(a)(3) of title 18, United States Code, is amended in the matter following subparagraph (B) by striking one year and inserting 5 years . 4. Serious recordkeeping offenses that aid gun trafficking Section 924(a)(3) of title 18, United States Code, is amended by striking the period at the end and inserting . If the conduct described in subparagraph (A) or (B) is in relation to an offense under subsection (a)(6) or (d) of section 922, the licensed dealer, licensed importer, licensed manufacturer, or licensed collector shall be fined under this title, imprisoned for not more than 10 years, or both. . 5. Suspension of firearms dealer’s license and civil penalties for violations of the Gun Control Act Section 923 of title 18, United States Code, is amended by striking subsections (e) and (f) and inserting the following: (e) (1) (A) The Attorney General may, after notice and opportunity for hearing, suspend or revoke any license issued under this section, or may subject the licensee to a civil penalty of not more than $10,000 per violation, if the holder of the license— (i) has violated any provision of this chapter or any rule or regulation prescribed by the Attorney General under this chapter