I have been watching the news and listening to the reports of the "terror gap" and how the gov wants to use the NICS system to deny sales. While I am all for a terrorist not getting a gun there are ALOT of flaws in that list. But there is one thing in the reports that disturbs me, how does the government know that 1,119 (per CNN) folks on the terror watch list have been approved to by firearms when the NICS system must destroy their records? How would they know that the failed bomber purchased one if the records of approved transactions were really destroyed by the next operational day? Sorry but just wondering if i am the only one bothered by this.

From the FBI/NICS website:

The NICS is not to be used to establish a federal firearm registry; information about an inquiry resulting in an allowed transfer is destroyed in accordance with NICS regulations. Current destruction of NICS records became effective when a final rule was published by the Department of Justice in The Federal Register, outlining the following changes. Per Title 28, Code of Federal Regulations, Part 25.9(b)(1), (2), and (3), the NICS Section must destroy all identifying information on allowed transactions prior to the start of the next NICS operational day.