Palantir Technologies, co-founded by Peter Thiel – a billionaire venture capitalist and early supporter of US president Donald Trump – won a 12-week contract to analyse the FCA’s internal data to help combat financial crime.
Lawmakers on the parliamentary treasury committee, however, raised their concerns with FCA officials, including chief executive Nikhil Rathi, over the company’s potential access to sensitive regulatory data.
“The other concern is that they become ubiquitous across government,” Conservative lawmaker John Glen said. “Is there anything that can be done to ensure they don’t become a monopoly?”
Palantir has also secured contracts with Britain’s ministry of defence and national health service.
Jessica Rusu, the FCA’s chief data, information and intelligence officer, said the procurement process had been conducted “blind”, meaning the regulator did not know the identity of the winning bidder until it concluded.
Palantir will act as a data processor, she said, adding that the US Cloud Act, which obliges US technology firms to provide data to US authorities under certain circumstances, would not apply to the FCA arrangement.
The decision to award the contract to a US provider comes after the FCA itself has warned the financial services industry that a heavy reliance on a small number of large tech firms could create systemic risks.
Mr Rathi acknowledged to lawmakers that there was “a big strategic question around the deployment of big technology across… public functions”, but said tackling financial crime required stronger use of data and analytics.
“We also want to be the most effective enforcer against financial crime and money laundering, and that requires us to use data intelligence more effectively and use best-in-class tools,” he said. “They won the procurement.”
A Palantir spokesperson said the company was proud the FCA was using its software to tackle financial crime, adding that it was precluded from commercialising data processed in the course of its work in Britain.
“The software can only be used – legally and contractually – to process data in strict accordance with the instructions of the customer,” the spokesperson said.
Palantir reported a sharp rise in sales in the fourth quarter of 2025, boosted by US government contracts. Those deals, which include work for US Immigration and Customs Enforcement, have drawn public criticism and prompted CEO Alex Karp to defend the firm’s surveillance technology.
source