FCA’s Palantir deal could expose UK financial data to Trump’s US, critics fear
MPs and campaigners fear the FCA’s Palantir trial could put sensitive UK financial data within reach of US disclosure laws.
Intelligence analysis by GPT-5.4 Mini
The FCA is trialling Palantir AI on sensitive fraud and complaint data, but critics say using a US company raises sovereignty and privacy risks. Palantir and the FCA say the data stay encrypted and under the regulator’s control.
The FCA is the UK group that watches banks and finance companies. It is trying out a computer helper from Palantir to spot fraud faster.
Some people are worried because Palantir is an American company. They fear UK data could end up being pulled into US law, like putting important papers into a mailbox that another country can open.
The FCA says the data is locked up, encrypted, and still under its control. Palantir says the fears are overblown and that it cannot hand over the data by itself.
Analysis
What the deal is
The Financial Conduct Authority is running a 12-week trial with Palantir to see whether AI can help it spot financial crime more effectively. The system is expected to work across case intelligence files, lender reports about proven and suspected fraud, consumer complaints, and even social media trawls.
Why critics are alarmed
The core concern is legal and political, not just technical: opponents argue that putting sensitive UK financial information into a system run by a US company could make it vulnerable to US disclosure laws. Martin Wrigley MP said he worries the FCA is using a foreign-controlled company that could be asked to pass data to the US government. Open Rights Group went further, arguing that US law can reach data held by US-based businesses like Palantir.
What the FCA and Palantir say
The FCA told MPs that the US Cloud Act does not apply here and that it will remain the data controller throughout the trial. Jessica Rusu said there will be no intelligence sharing and that the data is fully encrypted. Palantir also rejected the criticism, saying the law does not give law enforcement free access, that requests would need a serious criminal investigation and a warrant, and that it cannot respond without FCA involvement because the keys stay with the regulator.
Wider context
The row lands in a broader debate about public-sector dependence on US tech firms. The story notes Palantir’s existing UK government and NHS work, and also references Sadiq Khan’s recent block on a separate Palantir deal with the Metropolitan police after procurement concerns. The FCA’s case is now a test of whether regulators can use external AI tools without weakening control over sensitive public data.
Key points
- The FCA is testing Palantir AI for a 12-week trial to help detect financial crime.
- Critics worry sensitive UK financial data could be exposed to US disclosure laws.
- The FCA says the data stays encrypted and under its control, with no intelligence shared.
- Palantir says US law would not give unfettered access and that it could not answer a request without FCA involvement.
- The row adds to wider concerns about UK public bodies relying on US tech firms for sensitive work.
