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UK Financial Watchdog Tests Palantir on Sensitive Data to Spot Crime

The move tests whether outside analytics can turn under-used watchdog files into leads without risking privacy.

Overview

  • News reports Monday detailed a three-month FCA pilot with Palantir’s Foundry platform to search its internal intelligence trove for fraud and money-laundering leads.
  • The project opens a unified data store known as a data lake, which holds case files, reports from banks and crypto firms, emails, phone recordings, and social media tied to investigations.
  • The regulator says the firm will operate only as a data processor with all information hosted in the UK, FCA-held encryption keys, mandatory deletion after the trial, and any new intellectual property staying with the FCA.
  • The deal has been reported at more than £30,000 a week and could pave the way for broader AI use across oversight of roughly 42,000 firms, raising worries about dependence on a single US vendor with a record of long-term embeds.
  • Green and Liberal Democrat MPs called for a rethink and privacy advocates, along with some FCA staff, warned about using real data, while City-focused outlets emphasized safeguards and procurement risks and activist press highlighted the company’s controversial public-sector work.