No, they are being recalled because they have the safety sear (auto sear) pin installed in the receiver. Commonly referred to as the "3rd pin" which in the eyes of the ATF is a machine gun AK receiver even if the select fire fire control group is not installed. You couldn't install it into the pistol, even with the 3rd hole present as it is from the factory because you still need a slot in one of the rails inside of the receiver, which is not present. The ATF still considers them machine guns though. IWI recalled them before the ATF even caught wind of it, because they noticed the issue and are issuing full refunds to buyers and dealers. I'm surprised no one caught it before, the "3rd pin" is a big red flag to anyone buying what they think is a title I AK.
The hope is they will re-release it without the safety sear holes and installed pin to be in compliance with the ATFs rules, or interpretation of the law that labels it a machine gun even though the receiver would require machining to be capable of accepting select fire components.
Before I seen this post I had inquired myself, interested in a rifle. This is the reply I received on the 22nd of January. Not so much about the recall, this is more about the time frame of availability. According to iwi.
The Ace receiever (rifle and Pistol) is subject to recall due to the three hole configuration. It seems three holes is deemed easily convertible to full auto by ATF. At this point the enmissis is on producing the pistols to replace those that had to be returned and the rifles will come later. The pistol are expected to arrive in 3-4 months and no mention of the rifles as of yet. They may coincide or be delayed, no official word.
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