FCA chief calls AI the greatest-ever financial crime risk

FCA CEO Nikhil Rathi said AI has pushed threats to market integrity to the most dangerous level he has seen and announced the watchdog will fight back with the same technology as an "agentic regulator." He cited AI-driven volatility, concentration risk from hyperscale cloud providers, novel market abuse and cross-border financial crime as four compounding threats.

• FCA to become an "agentic regulator" operating at machine speed
• Threats: volatility, cloud concentration, market abuse, financial crime
• Rathi cited a Google Cloud UK outage that hit Revolut
• FCA is reviewing Meta's Muse AI agent via the DRCF