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UK MPs have called on the government to halt a contract with Palantir, a US-based spy-tech company, after it was revealed that the firm will gain access to a vast trove of highly sensitive UK financial regulation data. The Financial Conduct Authority (FCA), the watchdog overseeing thousands of financial bodies, has hired Palantir to apply its AI systems to two years' worth of internal intelligence data to help tackle financial crime. However, the Liberal Democrats and Green party have raised concerns over Palantir's ties to Donald Trump and the potential risks to national and economic security. The Liberal Democrats have called for a government investigation into the contract, citing concerns that it could be "a huge error of judgment". Palantir, founded by Peter Thiel, a billionaire supporter of Trump, has built up over £500m in contracts in the UK, including with the NHS, police, and Ministry of Defence. The company supports the US and Israeli militaries and the ICE immigration crackdown. Insiders at the FCA have questioned whether there are sufficient safeguards in place to prevent the data from being exploited. There are concerns about the potential for data about sensitive FCA investigations into high-profile figures to be accessed during Palantir's work. The FCA has insisted that Palantir will be a "data processor", not a "data controller", meaning it can only act on instruction from the regulator. The FCA will retain exclusive control over the encryption keys for the most sensitive files, and the data will be hosted and stored solely in the UK. Despite these assurances, MPs have expressed concerns over the risks associated with the contract. Daisy Cooper, the Liberal Democrats' Treasury spokesperson, called for an investigation into the FCA's Palantir contract, citing concerns over Palantir's ties to Trump. The Green party MP Siân Berry has called for the government to "step in immediately and protect our national and economic security by blocking this contract award". Palantir has denied claims that it may "use customer data for our own purposes", stating that this is "something that we have no business interest in, and that we are legally and contractually prevented from doing".

Palantir, a Miami-based company backed by billionaire Peter Thiel, has secured a three-month trial contract with the Financial Conduct Authority (FCA) to analyze a vast amount of sensitive UK financial regulation data. The deal, worth over £30,000 per week, aims to help the FCA tackle financial crimes such as fraud, money laundering, and insider trading.The FCA has awarded Palantir the contract to investigate its internal intelligence data, which includes highly sensitive case intelligence files, information on problem firms, and reports from lenders about proven and suspected frauds. Palantir will apply its AI system, known as Foundry, to huge quantities of information held by the watchdog, including recordings of phone calls, emails, and social media posts.The contract has raised concerns about privacy and the company's ethical reliability. One source expressed concerns that Palantir may share the information it learns from the FCA with other parties. Palantir's technology is used by the Israeli military and in the US president's ICE immigration crackdown, leading to criticism from left-wing MPs.The FCA has stated that it has strict controls in place to ensure data is protected and that Palantir will only act on instruction from the regulator. The data will be hosted and stored solely in the UK, and Palantir will have to destroy the data after completion of the contract.Experts have highlighted the potential benefits of using AI to tackle financial crimes, but also emphasized the need for robust protocols to protect sensitive information. Prof Michael Levi, an expert in money laundering, noted that AI is a potentially valuable technology to tackle financial crimes, but also raised concerns about the ownership and control of the data.

Palantir, a leading AI and data analytics company, has secured a major contract with the UK's Financial Conduct Authority (FCA) to leverage its AI technology for detecting financial wrongdoing. This deal marks a significant expansion of Palantir's presence in the UK, where it has already embedded its technology in the NHS, police, and military. The contract, valued at over £500m, enables Palantir to access terabytes of data gathered by the FCA, providing it with an unparalleled view of the inner workings of British authorities and the City of London, a global financial hub. Campaign groups have expressed concerns over Palantir's work with public authorities, citing its previous involvement with controversial entities such as the US Department of Homeland Security and the Israel Defense Forces. However, the company continues to secure lucrative contracts in the UK. The FCA aims to utilize Palantir's AI technology to better detect signs of wrongdoing, such as money laundering and fraud, which account for approximately 40% of all crimes in the UK. The regulator's workplan for 2025-26 includes expanding the use of data and intelligence to identify and act on high-risk firms and individuals. However, experts warn that the use of AI in detecting financial wrongdoing may lead to new challenges, such as criminals adapting to evade detection by using techniques like invisible 'white text' in documents to instruct AI systems to ignore incriminating information. Prof Michael Levi, an expert in money laundering at Cardiff University, notes that while there are concerns about data privacy, the use of AI technology can also help target corporate holdings and shell companies used for illicit activities.