FCA Forms Quantum Experimentation Group to Test Machine Learning Against Money Laundering and Fraud
FCA Forms Quantum Experimentation Group to Test Machine Learning Against Money Laundering and Fraud #
The UK’s Financial Conduct Authority has announced a Quantum Experimentation Group (QEG), which the regulator says is the first initiative of its kind among financial watchdogs globally, to test whether quantum machine learning can improve detection of financial crime.
The group launches in the first quarter of 2027 and will bring together financial services firms, quantum technology providers and national research laboratories for early-stage experimentation. Its opening focus is applying quantum machine learning to money laundering and fraud detection, two areas where classical computing has struggled with the volume and complexity of modern transaction data.
To address data governance concerns that have historically hampered technology testing in regulated settings, participants will work with synthetic datasets generated by the FCA itself. The approach allows benchmarking of quantum algorithms against classical methods without using sensitive customer data.
“We want to help firms explore where quantum could make a meaningful difference, and early experimentation is essential to understanding its potential in financial services,” said Jessica Rusu, the FCA’s Chief Data, Information and Intelligence Officer.
The QEG follows a research note the FCA published in October 2025 on quantum computing’s long-term applications across financial services. The regulator said the group will also help it assess the technology’s capabilities, limitations and the practical challenges firms face when experimenting with it.
Financial institutions, quantum computing companies and research laboratories can register interest through 31 December 2026. Further details on selection and onboarding will follow.
The announcement comes alongside a separate call from FCA Director of Specialists Mark Francis for firms to begin preparing for post-quantum cryptography. He outlined a migration timeline running from an initial plan in 2028 through high-priority system upgrades by 2031 to full migration across all services and products by 2035.
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