FCA's Palantir deal could expose UK financial data to Trump's US, critics fear (www.theguardian.com)

The UK Financial Conduct Authority (FCA) is under scrutiny for its partnership with Palantir, a US tech company, which is intended to enhance the FCA’s capabilities in detecting financial crime through AI. Critics, including MP Martin Wrigley, are concerned that this collaboration could inadvertently expose UK citizen and commercial data to the Trump administration due to the US Cloud Act, which allows American authorities torequest data held by US-based firms. As the deal enters a 12-week trial phase, there are fears surrounding data sovereignty and the implications of using foreign-controlled technology for sensitive investigations. The FCA contends that it retains control over the data, asserting that Palantir merely functions as a data processor and will not have access to unencrypted information without FCA consent. Palantir has countered concerns by stating that the Cloud Act necessitates a judicial warrant for data requests, implying that the data is securely managed. However, legal experts argue that the distinction between data controller and processor may not fully protect against US laws, highlighting ongoing tensions regarding data privacy and governance in the context of increasing reliance on AI technologies.