Could Palantir share UK's financial data with Trump administration?
What's the story
The UK's Financial Conduct Authority (FCA) is facing pressure to clarify its partnership with US tech giant Palantir. Critics are concerned that this collaboration could give the Donald Trump administration indirect access to large amounts of sensitive citizen and commercial data. The warning comes from Martin Wrigley MP, a member of the House of Commons' science and technology select committee.
Partnership details
Concerns over sensitive data usage
Palantir, a $375 billion company co-founded by Trump supporter Peter Thiel, is expected to use its AI systems on a variety of FCA data. This includes case intelligence files, reports from lenders about confirmed and suspected frauds, consumer complaints, and social media posts. The deal is currently in a 12-week trial phase. Wrigley expressed concern over the FCA's use of sensitive data with a foreign-controlled company that could be asked to share data with the US government.
Contract controversies
Controversial contracts and political backlash
The FCA's deal with Palantir has already raised eyebrows among MPs and campaigners. The company also provides software to ICE for Trump's immigration crackdown and the Israeli military. It has contracts worth over £500 million with NHS England and the Ministry of Defence. On May 21, London Mayor Sadiq Khan blocked a £50 million two-year agreement between Palantir and the Metropolitan police over a "serious breach" of procurement rules.
Regulatory stance
FCA responds to public data sovereignty concerns
The FCA, which oversees the conduct of some 42,000 businesses, has responded to concerns about UK public data sovereignty. In March, it told the Commons Treasury select committee that the US law in question, the US Cloud Act, does not apply and that it will remain the data controller at all times. Jessica Rusu, FCA's chief data, information and intelligence officer, said, "There will not be any intelligence shared," adding that Palantir is a "data processor," not a "controller."
Legal implications
Legal interpretations questioned
Wrigley has raised concerns over the FCA's interpretation of the US Cloud Act, which gives US authorities access to data held by businesses based in the US. He has written to the finance watchdog seeking clarification on its legal basis for believing that this law wouldn't apply in these circumstances. Mariano Delli Santi from Open Rights Group warned that handing over data to Palantir could push UK residents' information into "the meat grinder of the Trump administration."
Company response
Palantir defends partnership
In light of the concerns, Palantir has defended its partnership with the FCA. A spokesperson said, "The Cloud Act does not give US law enforcement agencies unfettered access to data." They added that it requires a serious criminal investigation and judicial warrant before any request can be made. The spokesperson also emphasized that FCA data is encrypted with keys under their exclusive control, making it technically impossible for them to respond to such requests without direct involvement from the FCA.