FCA targets financial crime with new 2027 quantum computing group

Initial focus on anti-money laundering and fraud detection

The initial use case for the group will focus on applying quantum machine learning to detect financial crime, specifically targeting anti-money laundering and fraud detection. The FCA plans to launch this work in the first quarter of 2027.

Participants will explore quantum machine-learning approaches using a common synthetic dataset provided by the regulator. This process involves participant-led experimentation to test how these quantum approaches compare against existing classical techniques.

Synthetic data provided to overcome testing barriers

The FCA has developed artificial, or synthetic, data to be used by participants during the trials. This initiative aims to address the common lack of suitable data required for the development of quantum algorithms.

The regulator noted that firms are currently at differing stages of quantum development, with barriers to experimentation including limited access to suitable information and a lack of specialist expertise. By providing a common synthetic dataset, the FCA intends to help participants overcome these barriers to test potential applications of the new technology.

Collaboration between firms, researchers and the regulator

Jessica Rusu said that by uniting these organisations, the Financial Conduct Authority can develop readiness and pinpoint practical uses for industry challenges.

This collaboration aims to bridge the specialist-expertise gap required to translate real-world problems into quantum applications.

Regulatory goals and limitations of the initiative

It assists the FCA in understanding the technology’s opportunities, limitations, and regulatory implications.

The initiative is positioned as an early-stage, evidence-generation and shared-learning programme rather than a vehicle for endorsing specific solutions.

The FCA makes clear that involvement does not constitute endorsement of any technology nor guarantee regulatory compliance.

Interest must be registered via email, though registration does not guarantee participation. Further details on eligibility and selection will be provided as the programme develops.

Quantum Zeitgeist includes a disclaimer that all material is obtained from sources believed accurate as of the publication date but makes no warranty about its accuracy or completeness.

Context of financial crime and technology challenges

On 4 November 2026, the day before the launch, the FCA urged a switch to encryption that can withstand quantum computers.

Failed change projects accounted for about one-fifth of all incidents reported to the FCA in 2025.

Data deficiencies were responsible for 68% of the FCA's anti-money-laundering fines over five years, based on a FinanceMagnates.com review of 22 cases totalling more than £430 million published in January.