[Federal Register Volume 62, Number 39 (Thursday, February 27, 1997)]
[Notices]
[Pages 8995-8998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4853]


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NATIONAL COUNTERINTELLIGENCE CENTER


Privacy Act of 1974; Establishment of a New System of Records

AGENCY: National Counterintelligence Center (NACIC).

ACTION: Proposed establishment of a new Privacy Ace system of records.

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SUMMARY: The National Counterintelligence Center (NACIC) proposes to 
establish a new system of records entitled the National 
Counterintelligence Center System of Records. Federal Agencies are 
required by the Privacy Act of 1974 and Office of Management and Budget 
Circular A-

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 130, Transmittal Memorandum No. 2, July 15, 1994, to publish notice in 
the Federal Register of proposed systems of records.

DATES: The proposed new system of records will become effective without 
further notice 40 days after publication in the Federal Register unless 
modified by a subsequent notice to incorporate comments received from 
the public. Although the Privacy Act requires only that the portion of 
the system which describes the ``routine uses'' of the system be 
published for comment, NACIC invites comment on all portions of this 
notice. Comments must be received by the contact person listed below on 
or before April 8, 1997.

FOR FURTHER INFORMATION WRITE:
Information and Privacy Coordinator, Executive Secretariat Office, 
National Counterintelligence Center, 3W01 NHB, Washington, DC 20505.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act, 5 U.S.C. 552a, 
NACIC proposes to establish a new system of records to be maintained at 
the NACIC Office. The purpose of this notice is to announce the 
creation and character of the systems of records maintained by NACIC. 
NACIC was established under the authority of the National 
Counterintelligence Policy Board (NACIPB), in accordance with 
Presidential Decision Directive/NSC-24 ``US Counterintelligence 
Effectiveness,'' dated May 3, 1994. During 1994, in the wake of the 
Aldrich Ames espionage investigation, President Clinton ordered a 
review of the overall effectiveness of US counterintelligence (CI).That 
review resulted in the establishment of a new CI policy and 
coordination apparatus for the US CI community. PDD/NSC-24 eliminated 
the National Advisory Group for Counterintelligence (NAG/CI) policy 
structure under the Director of Central Intelligence (DCI) and 
established the National Counterintelligence Policy Board (NACIPB) to 
function as the primary body for addressing national CI policy issues. 
In addition, the directive established NACIC for the purpose of 
coordinating national level CI activities. Although located at CIA 
Headquarters, NACIC is neither a CIA entity, nor is it part of the DCI 
reporting structure. Rather, NACIC is an autonomous CI entity that 
reports to the NACIPB and the National Security Council. NACIC, 
however, does work in close coordination with the DCI's staff and the 
CIA's Counterintelligence Center (CIA/CIC). NACIC's staff of employees 
is currently drawn from counterintelligence and security professionals 
from the FBI, CIA, NSA, the Department of Defense, and the Department 
of State. Each individual serves on a rotational basis from his/her own 
agency, with most serving a two year tour. Organizationally, NACIC 
consists of the Offices of the Director and Deputy Director and three 
subordinate offices: the Executive Secretariat Office (ESO), the 
Program Integration Office (PIO) and the Threat Assessment Office 
(TAO).
    It should be noted that as a result of its policy coordination 
role, NACIC's main concern is with coordination of national level CI 
activities, not individuals. As a result, individuals mentioned in many 
of NACIC's records are not clearly identified by name and address.
    ESO serves as the secretariat to the NACIPB, the National 
Counterintelligence Operations Board (NACOB), and their working groups. 
It coordinates national strategic CI planning efforts by the NACIPB and 
serves as the contact with CIA's Community Management Staff (CMS) on 
administrative, logistical, security, and finance matters.
    The PIO provides strategic guidance and assesses the effectiveness 
of CI operations; sponsors seminars and conferences; and establishes 
and chairs working groups comprised of representatives from federal 
agencies. PIO's Community Training Branch is responsible for 
facilitating the development of organizing, and implementing training 
for the CI community and for private industry. In some cases these have 
been joint efforts with federal agencies or with private organizations. 
In addition to publishing its unclassified quarterly newsletter, 
``Counterintelligence News and Developments,'' the Training Branch 
Publishes brochures and reports developed by its Awareness Working 
Group.
    The TAO serves as the focal point for facilitating the production 
of national-level, foreign intelligence threat assessments; developing 
and disseminating information relating to foreign intelligence threats; 
coordinating assessment of damage to US interests resulting from 
espionage cases; and providing CI community-wide analytic support. 
TAO's National Needs branch is the Customer Service Branch of NACIC. It 
serves as a point of contact for non-CI federal agencies, generates 
products for their use and also for use throughout the CI community. 
For example, catalog lists are maintained indicating which agencies 
have conducted threat assessments on various countries or issues, thus 
saving another agency the expense of conducting its own threat 
assessment analysis. TAO's Analysis Branch prepares CI community-
coordinated threat assessments. In some cases, the assessments are 
tailored to satisfy an agency's specific concern. In other cases they 
are conducted in response to a specific incident or activity.

Statement of General Routine Uses

    The following routine uses apply to, and are incorporated by 
reference into each system of records maintained by NACIC. It should be 
noted that the blanket routine uses of the records are published below 
only once in the interest of simplicity, economy and to avoid 
redundancy before the individual record system notices begin.
    1. Routine Use-Law Enforcement: In the event that a system of 
records maintained by NACIC to carry out its functions indicates a 
violation or potential violation of law, whether civil, criminal or a 
violation or potential violation of law, whether civil, criminal or 
regulatory in nature, and whether arising by general statue or by 
regulation, rule or order issued pursuant thereto, the relevant records 
in the system of records may be referred, as a routine use, to the 
appropriate agency whether Federal, state, local or foreign, charged 
with the responsibility of investigating or prosecuting such violation 
or charged with enforcing or implementing the statute, rule, regulation 
or order issued pursuant thereto.
    2. Routine Use--Disclosure When Requesting Information: a record 
from a system of records maintained by this component may be disclosed 
as a routine use to a Federal, state, or local agency maintaining 
civil, criminal, or other relevant enforcement information or other 
pertinent information, if necessary, to obtain information relevant to 
a component decision concerning the hiring or retention of an employee, 
the issuance of a security clearance, the letting of a contract, or the 
issuance of a license, grant or other benefit.
    3. Routine Use-Disclosure of Requested Information: A record from a 
system of records maintained by this component may be disclosed to a 
Federal agency, in response to its request, in connection with the 
hiring or retention of an employee, the issuance of a security 
clearance, the reporting of an investigation of an employee, the 
letting of a contract, or the issuance of a license, grant or other 
benefit by the requesting agency, to the extent that the information is 
relevant and necessary to the requesting agency's decision on the 
matter.

[[Page 8997]]

    4. Routine Use--Congressional: Inquiries from a system of records 
maintained by this component may be made to a Congressional office from 
the record of an individual in response to an inquiry from the 
Congressional office made at the request of that individual.
    5. Routine Use--Disclosures Required by International Agreements: A 
record from a system of records maintained by this component may be 
disclosed to foreign law enforcement, security, investigatory, or 
administrative authorities in order to comply with requirements imposed 
by, or to claim rights conferred in, international agreements and 
arrangements including those regulating the stationing and status in 
foreign countries of Department of Defense military and civilian 
personnel.
    6. Routine Use-Disclosure to the Department of Justice for 
Litigation: A record from a system of records maintained by this 
component may be disclosed as a routine use to any component of the 
Department of Justice for the purpose of representing any officer, 
employee or member of this component in pending or potential litigation 
to which the record is pertinent.
    7. Routine Use--Disclosure of Information to the General Services 
Administration: A record form a system of records maintained by this 
component may be disclosed as a routine use to the General Services 
Administration (GSA) for the purpose of records management inspections 
conducted under authority of 44 U.S.C. 2904 and 2906.
     8. Routine Use-Disclosure of Information to the National Archives 
and Records Administration (NARA): A record from a system of records 
maintained by this component may be disclosed as a routine use to the 
National Archives and Records Administration (NARA) for the purpose of 
records management inspections conducted under authority of 44 U.S.C. 
2904 and 2906.
    9. Routine Use-Disclosure to the Merit Systems Protection Board: A 
record from a system of records maintained by this component may be 
disclosed as a routine use to the Merit Systems Protection Board, 
including the Office of the Special Counsel for the purpose of 
litigation, including administrative proceedings, appeals special 
studies of the civil service and other merit systems, review of OPM or 
component rules and regulation, investigation of alleged or possible 
prohibited personnel practices; including administrative proceedings 
involving any individual subject of investigation, and such other 
functions, promulgated in 5 U.S.C. 1205 and 1206, or as may be 
authorized by law.
    10. Routine Use--Counterintelligence Purposes: A record from a 
system of records maintained by this component may be disclosed as a 
routine use outside the US Government for the purpose of 
counterintelligence activities authorized by U.S. Law or Executive 
Order or for the purpose of enforcing laws which protect the national 
security of the United States.
NACIC-1

System name:
    National Counterintelligence System of Records

System location:
    National Counterintelligence Center, 3 WO1 NHB, Washington, D.C. 
20505

Categories of individuals covered by the system:
    A. Individuals who are of foreign intelligence or foreign 
counterintelligence interest and relate in any manner to foreign 
intelligence threats to US national and economic security.
    B. Applicants for, and current and former personnel of NACIC.
    C. Individuals associated with NACIC administrative operations or 
services including pertinent functions such as training, contractors 
and pertinent persons related thereto.

Categories of records in the system:
    1. Director's Correspondence: Correspondence whose contents relates 
to NACIC's mission, policies, or programs; and correspondence whose 
contents relates to routine, administrative, or facilitative matters.
    2. NACIC Chronoligical Files: Copies of outgoing correspondence, 
memoranda, and other records signed by the Director, the Deputy 
Director, and NACIC Office Chiefs.
    3. Public Relations Files: Speeches or public statements made by 
the Director and Deputy Director.
    4. NACIC Staff Meeting Records, agendas, minutes, and ``staff 
meeting highlights.''
    5. Progress Reports: six month progress reports submitted to the 
National Counterintelligence Policy Board outlining activities and 
accomplishments of the NACIC.
    6. Compromised Names Database. The purpose of the database is to 
notify US intelligence community personnel whose names were potentially 
compromised as a result of espionage or other foreign intelligence 
collection activity. NACIC reviews pertinent reports to determine 
documents that were possibly passed in a particular case and then 
reviews those documents for names. The database contains the names of 
persons potentially compromised, date of the memo sent to the person or 
their employer informing them, the document number of where the 
person's name came from, document title, and document date.
    7. Chronological Files of the PIO: Copies of correspondence, 
memoranda, and other records generated by PIO and its branches in 
assessing the effectiveness of CI operations, maintained for reference 
purposes.
    8. Publications, Training Materials and Regional Seminars Records 
Maintained by PIO's Community Training Branch: Letters of acceptance, 
enrollment forms, thank you letters, list of attendees, list of 
speakers, notes, case studies, syllabus, training packet, magazine or 
newspaper articles, and other records used either for course 
development purposes or to facilitate the presentation of seminars.
    9. Personnel Files: Individual personnel folders of staff 
employees, consultants and contract employee files consisting of papers 
documenting personnel actions; performance appraisals; correspondence; 
training documents; travel documents; contracts; justifications; 
memoranda; and administrative material. (Many of these files are 
maintained on a temporary basis while the individuals are detailed to 
the NACIC. Upon their return to their home agency, their file is 
returned with them.)
    10. Freedom of Information Act (FOIA)/Privacy Act (PA) Requests and 
Legal Fields: Files created in response for information under the FOIA/
PA, consisting of the original request, a copy of the reply thereto, 
and all related supporting files which may include the official file 
copy of requested record or copy thereof; files created in response to 
administrative appeals for release of information denied by the NACIC, 
consisting of the appellant's letter, a copy of related supporting 
documents; FOIA/PA Control Files and Report Files; Files relating to an 
individual's request to amend a record pertaining to the individual as 
provided for under 5 U.S.C. 552a(d)(2), 552a(d)(3), and to any civil 
action brought by the individual against NACIC as provided under 5 
U.S.C. 552a(g); Privacy Act Report files of recurring reports and one-
time information requirements relating to agency implementation 
including biennial reports to the Office of Management and Budget, and 
Report on New Systems.

[[Page 8998]]

Authority for maintenance of the system:
    The Federal Records Act of 1950 Title 44, United States Code, 
Chapter 31, Section 3101; and Title 36, Code of Federal Regulations, 
Chapter XII, require Federal agencies to insure that adequate and 
proper records are made and preserved to document the organization, 
functions, policies, decisions, procedures and transactions and to 
protect the legal and financial rights of the Federal Government.

Routine Uses of Records Maintained in the System, Including Categories 
of Users and the purposes of such Uses:
    (See Statement of General Routing Uses)

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Files are maintained in computerized form and hard copy form. 
Computerized form may be stored in memory, on disk storage, on computer 
tape, or on a computer printed listing.

Retrievability:
    Names are retrievable by automated word or hand search. NACIC will 
not permit any organization, public or private, outside the NACIC to 
have direct access to NACIC files. All searches on the NACIC data base 
and hard files will be performed on site, within NACIC space, by NACIC 
personnel.

Safeguards:
    Records and databases are maintained in a restricted area within 
NACIC and are accessed only by NACIC personnel. All employees are 
checked to insure they have recent background investigations prior to 
being assigned to NACIC and are cautioned about divulging confidential 
information or any information contained in NACIC files. Failure to 
abide by these provisions may violate certain statutes providing 
maximum severe penalties of a ten thousand-dollar fine or 10 years 
imprisonment, or both. Employees who resign or retire are also 
cautioned about divulging information acquired in their jobs. 
Registered mail is used to transmit routine hard copy records. Highly 
classified records are hand carried by employee personnel. Highly 
classified or sensitive privacy information, which is electronically 
transmitted between NACIC and other offices, is transmitted in 
encrypted form to prevent interception.

Retention and disposal:
    Records evaluated as historical and permanent will be transferred 
to the National Archives after established retention periods and 
administrative needs of the NACIC have elapsed.

System manager(s) and address:
    Information and Privacy Coordinator, Executive Secretariat Office, 
National Counterintelligence Center, 3W01 NHB, Washington, D.C. 20505.

Record access procedures:
    A request for access to a record from the system shall be made in 
writing with the envelope and the letter clearly marked ``Privacy 
Access Request''. Include in the request your full name, complete 
address, date of birth, place of birth, notarized signature, and other 
identifying data you may wish to furnish to assist in making a proper 
search of NACIC records. A request for access to records must describe 
the records sought in sufficient detail to enable NACIC personnel to 
locate the system of records containing the record with a reasonable 
amount of effort. Whenever possible, a request for access should 
describe the nature of the record sought, and the date of the record or 
the period in which the record was compiled. The requester will also 
provide a return address for transmitting the information. Requests for 
access must be addressed to the Information and Privacy Coordinator, 
Executive Secretariat Office, National Counterintelligence Center, 3W01 
NHB, Washington, D.C. 20505.

Contesting record procedures:
    Individuals desiring to contest or amend information maintained in 
the system should also direct their request to the Information and 
Privacy Coordinator, Executive Secretatiatat Office, National 
Counterintelligence Center, 3W01 NHB, Washington, DC. 20505.

Exemptions claimed for the system:
    Notice is hereby given that NACIC intends to exempt, from certain 
provisions of the Act, those systems of records which are (A) 
specifically authorized under criteria established by an Executive 
Order to be kept secret in the interest of national defense or foreign 
policy and (B) are in fact, properly classified pursuant to such 
Executive Order. (5 U.S.C. 552(b)(1), as amended by Public Law 93-502) 
In addition, pursuant to authority granted in section (j) of the 
Privacy Act (5 U.S.C. 552a (j)) the Director of NACIC has determined 
(C) to exempt from notification under subsections (e)(4)(G) and (f)(1) 
those portions of each and all systems of records which have been 
exempted from individual access under subsection (j), in those cases 
where the Information and Privacy Coordinator, determines after advice 
by responsible components, that confirmation of the existence of a 
record may jeopardize intelligence sources and methods. In such cases 
the NACIC may choose to neither confirm nor deny the existence of the 
record and may advise the individual that there is no record which is 
available to him pursuant to the Privacy Act of 1974.
Michael Waguespack,
Director, National Counterintelligence Center.
[FR Doc. 97-4853 Filed 2-26-97; 8:45 am]
BILLING CODE 6310-02-M