The UK is expanding its relationship with US firm Palantir as the data analytics company signs a new contract with the Financial Conduct Authority.

The US-based firm, founded by controversial figure Peter Thiel, is set to aid the UK’s financial watchdog in analysing sensitive UK data to support its detection methods for financial fraud and scams.

Palantir has already established deals with the NHS, the Ministry of Defence, and UK law enforcement.

Palantir’s operations with other governments, however, is the source of much controversy, as it continues to collaborate with the US Immigration and Customs Enforcement (ICE) and the Israeli military.

Previous contracts with the firm sparked concerns from MPs that the government was not prioritising contracts with UK companies:  Palantir has over £500m in pubic sector deals in the UK.

The deals have intensified concerns over their potential to harm data privacy and security.

Insiders at the FCA also shared their concerns with The Guardian, showing fears that the firm may share how the FCA detects fraud, as well as the raft of data the firm will gain access to through the deal.

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The deal would see Palantir act as a “data processor”, not a “data controller,” which means that it would not access controls over encrypted data and would simply act upon the FCA’s instruction. While Palantir must delete data after it finishes its contract, it may process thousands of sensitive data points during its fraud investigations, raising privacy concerns.

Palantir’s founder Theil also faces his own criticism for his outlandish ideas around the ‘antichrist‘, his ongoing relationship with President Donald Trump, and his relationship with the late pedophile Jeffery Epstein.