In April 2003, we reported that watch lists were maintained by numerous federal agencies and that the agencies did not have a consistent and uniform approach to sharing information on individuals with possible links to terrorism. Our report recommended that the Secretary of the Department of Homeland Security (DHS), in collaboration with the heads of departments and agencies that have and use watch lists, lead an effort to consolidate and standardize the federal government’s watch list structures and policies. Subsequently, pursuant to Homeland Security Presidential Directive 6 (HSPD-6), dated September 16, 2003, the Attorney General established the Terrorist Screening Center (TSC) to consolidate the government’s approach to terrorism screening and provide for the appropriate and lawful use of terrorist information in screening processes. TSC’s consolidated watch list is the U.S. government’s master repository for all known or appropriately suspected international and domestic terrorist records used for watch list-related screening. TSC records contain sensitive but unclassified information on terrorist identities—such as name and date of birth—that can be shared with screening agencies, whereas the classified derogatory information that supports the watch list records is maintained in other law enforcement and intelligence agency databases. Records for inclusion on the consolidated watch list are nominated to TSC from the following two sources: Identifying information on individuals with ties to international terrorism is provided to TSC through the National Counterterrorism Center (NCTC), which is managed by the Office of the Director of National Intelligence. Identifying information on individuals with ties to purely domestic terrorism is provided to TSC by the FBI. HSPD-6 required the Attorney General—in coordination with the Secretary of State, the Secretary of Homeland Security, and the Director of Central Intelligence—to implement appropriate procedures and safeguards with respect to all terrorist information related to U.S. persons (i.e., U.S. citizens and lawful permanent residents) that is provided to NCTC (formerly the Terrorist Threat Integration Center). According to TSC, agencies within the intelligence community that collect and maintain terrorist information and nominate individuals for inclusion on TSC’s consolidated watch list are to do so in accordance with Executive Order 12333. With respect to U.S. persons, this order addresses the nature or type of information that may be collected and the allowable methods for collecting such information. It provides that agencies within the intelligence community are authorized to collect, retain, or disseminate information concerning U.S. persons only in accordance with procedures established by the head of the agency concerned and approved by the Attorney General, consistent with the authorities set out earlier in the order. The order further provides that agencies within the intelligence community are to use the least intrusive collection techniques feasible when such collection is conducted within the United States or when directed against U.S. persons abroad. Also, according to TSC officials, the center requires annual training for all personnel concerning the Privacy Act of 1974 to ensure that information collected on U.S. persons is handled in accordance with applicable law. To facilitate operational or mission-related screening, TSC sends applicable records from its terrorist watch list to screening agency systems for use in efforts to deter or detect the movements of known or suspected terrorists. For instance, applicable TSC records are provided to the Transportation Security Administration (TSA) for use by airlines in prescreening passengers; to a U.S. Customs and Border Protection (CBP) system for use in screening travelers entering the United States; to a Department of State system for use in screening visa applicants; and to an FBI system for use by state and local law enforcement agencies pursuant to arrests, detentions, and other criminal justice purposes. When an individual makes an airline reservation, arrives at a U.S. port of entry, or applies for a U.S. visa, or is stopped by state or local police within the United States, the frontline screening agency or airline conducts a name-based search of the individual against applicable terrorist watch list records. In general, when the computerized name-matching system of an airline or screening agency generates a “hit” (a potential name match) against a watch list record, the airline or agency is to review each potential match. Any obvious mismatches (negative matches) are to be resolved by the airline or agency, if possible, as discussed in our September 2006 report. However, clearly positive or exact matches and matches that are inconclusive (uncertain or difficult-to-verify) generally are to be referred to the applicable screening agency’s intelligence or operations center and TSC for closer examination. Specifically, airlines are to contact TSA’s Office of Intelligence; CBP officers at U.S. ports of entry are to contact CBP’s National Targeting Center; and Department of State consular officers who process visa applications are to submit a request for a security advisory opinion to Department of State headquarters. The intelligence or operations center is to refer exact matches and inconclusive matches to TSC. State and local law enforcement officials generally are to refer exact matches and inconclusive matches directly to TSC. In turn, TSC is to check its databases and other sources—including classified databases maintained by NCTC and the FBI—and confirm whether the individual is a positive, negative, or inconclusive match to the watch list record. TSC is to refer positive and inconclusive matches to the FBI’s Counterterrorism Division to provide an opportunity for a counterterrorism response. Deciding what law enforcement or screening agency action to take, if any, can involve collaboration among the frontline screening agency, NCTC or other intelligence community members, and the FBI or other investigative agencies. If the encounter arises in the context of an application for a visa or admission into the United States, the screening agency’s adjudicating official determines whether the circumstances trigger a statutory basis for inadmissibility. Generally, NCTC and the FBI are involved because they maintain the underlying derogatory information that supports terrorist watch list records, which is needed to help determine the appropriate counterterrorism response. If necessary, a member of an FBI Joint Terrorism Task Force can respond in person to interview and obtain additional information about the person encountered. In other cases, the FBI will rely on the screening agency and other law enforcement agencies—such as U.S. Immigration and Customs Enforcement—to respond and collect information. Figure 1 presents a general overview of the process used to resolve encounters with individuals on the terrorist watch list. To build upon and provide additional guidance related to HSPD-6, in August 2004, the President signed Homeland Security Presidential Directive 11 (HSPD-11). Among other things, this directive required the Secretary of Homeland Security—in coordination with the heads of appropriate federal departments and agencies—to submit two reports to the President (through the Assistant to the President for Homeland Security) related to the government’s approach to terrorist-related screening. The first report was to outline a strategy to enhance the effectiveness of terrorist-related screening activities by developing comprehensive and coordinated procedures and capabilities. The second report was to provide a prioritized investment and implementation plan for detecting and interdicting suspected terrorists and terrorist activities. Specifically, the plan was to describe the “scope, governance, principles, outcomes, milestones, training objectives, metrics, costs, and schedule of activities” to implement the U.S. government’s terrorism-related screening policies. According to DHS officials, the department submitted the required strategy and the investment and implementation plan to the President in November 2004. Additional information on the status of the strategy and implementation plan is presented later in this report. NCTC and FBI officials rely upon standards of reasonableness in determining which individuals are appropriate for inclusion on TSC’s watch list, but determining whether individuals meet these minimum standards can involve some level of subjectivity. In accordance with HSPD-6, TSC’s watch list is to contain information about individuals “known or appropriately suspected to be or have been engaged in conduct constituting, in preparation for, in aid of, or related to terrorism.” In implementing this directive, NCTC and the FBI strive to ensure that individuals who are reasonably suspected of having possible links to terrorism—in addition to individuals with known links—are nominated for inclusion on the watch list. Thus, as TSC adds nominated records to its watch list, the list may include individuals with possible ties to terrorism, establishing a broad spectrum of individuals that meet the “known or appropriately suspected” standard specified in HSPD-6. As such, inclusion on the list does not automatically cause an alien to be, for example, denied a visa or deemed inadmissible to enter the United States when the person is identified by a screening agency. Rather, in these cases, screening agency and law enforcement personnel may use the encounter with the individual as an opportunity to collect information for assessing the potential threat the person poses, tracking the person’s movements or activities, and determining what actions to take, if any. NCTC receives international terrorist-related information from executive branch departments and agencies—such as the Department of State, the Central Intelligence Agency, and the FBI—and enters this information into its terrorist database. On a formal basis, Department of State embassies around the world—in collaboration with applicable federal agencies involved in security, law enforcement, and intelligence activities—are expected to participate in the “Visas Viper” terrorist reporting program. This congressionally mandated program is primarily administered through a Visas Viper Committee at each overseas post. The committee is to meet at least monthly to share information on known or suspected terrorists and determine whether such information should be sent to NCTC for inclusion in its terrorist database. NCTC’s database, known as the Terrorist Identities Datamart Environment, contains highly classified information and serves as the U.S. government’s central classified database with information on known or suspected international terrorists.