Guide · Credit brokers & lenders
The tied credit intermediary AML exemption
The new EU AML Regulation brings most independent credit intermediaries into scope, but not all of them. A narrow exemption exists for intermediaries who act under the responsibility of a lender rather than independently. This guide explains what that means, how to tell if it applies to you, and what to do either way.
- Acting under one lender's responsibility can mean an exemption from the new duty
- Working with several unrelated lenders likely puts you outside the exemption
- An exempt intermediary can still choose to run a lightweight identity check
What does 'tied credit intermediary' mean exactly?
A tied credit intermediary is a broker or agent who arranges credit while acting under the responsibility of one or more specific lenders or credit intermediaries, rather than operating as an independent business dealing with the market as a whole. The concept comes from consumer and mortgage credit law before this AML change, where it already distinguished an intermediary tied to a particular lender's product range from one who compares and arranges credit independently across the market. The new AML Regulation borrows this existing distinction to decide who counts as newly obliged.
Why does acting under one lender's responsibility change your AML status?
The reasoning is that the lender you act for, being a credit institution or financial institution, is already an obliged entity under existing AML rules and already carries the due-diligence responsibility for the credit relationship. Layering a second, separate AML obligation onto the tied intermediary as well would duplicate a check the lender is already required to run. An independent intermediary working across many unrelated lenders has no single obliged party carrying that responsibility on their behalf, which is why the new rule reaches them specifically.
What if you work with more than one lender? Does that break the exemption?
Not automatically. What matters is whether you act under the responsibility of the lender or lenders you work with for each piece of business, rather than the simple count of how many lenders you have agreements with. An intermediary tied to several lenders, each relationship structured so the lender takes responsibility, can still fall inside the exemption for that business. An intermediary who operates independently in the market, sourcing credit from whichever lender suits the client without a formal responsibility arrangement, is closer to the newly obliged category. This is a genuinely fact-specific question, so confirm your position with your regulator or legal adviser rather than assuming either way.
Is the exemption automatic, or do you need to document your status?
The exemption follows from the legal and contractual relationship between you and the lender or lenders you act for, but that does not mean you can simply assert it without evidence. Keep the agreements that establish the tied relationship, and be ready to show a regulator or auditor exactly why your arrangement qualifies. This is a newly enacted provision, so confirm the exact wording and any implementing guidance from your national regulator before relying on the exemption, rather than working from a general summary alone.
What should a tied intermediary still do, even if exempt?
Exemption from the new AML due-diligence obligation does not remove other duties: consumer credit and mortgage credit conduct rules, data protection obligations under GDPR for the borrower information you collect, and any national requirements that predate this EU change all continue to apply regardless of your AML status. It is also common practice, and good business sense, to keep a basic identity record of who you are arranging credit for, both for your own fraud protection and because the lender you act for will likely ask for it as part of their own due diligence.
How this affects what you collect at borrower intake
For an exempt tied intermediary, borrower intake does not need a dedicated AML screening step, but it still benefits from collecting clean, verified identity information, since the lender you act for will need it anyway to complete their own due diligence. Building that identity capture into your application flow means you hand the lender a ready-made, verified record instead of a set of unverified form fields they have to check themselves, which tends to speed up approval rather than slow it down.
In Braigest
A verified borrower record, ready for the lender's own checks
A Braigest workflow can capture verified identity at intake even without a full AML screening step, so the lender you work with receives a ready-made record. Identity verification is available on every plan, from Solo at €29/month.
Frequently asked questions
How do I know for certain if I qualify as a tied credit intermediary?
It depends on the specific legal and contractual relationship with the lender or lenders you act for. This is a newly enacted, fact-specific question, so confirm your status with your regulator or a legal adviser rather than assuming.
If I am exempt, do I still need to identify my borrowers at all?
The AML due-diligence duty does not apply, but identity checks remain good practice and are usually needed anyway to satisfy the lender's own due diligence for the loan.
Can I lose the exemption if my business model changes?
Yes. If you move from acting under a lender's responsibility to operating independently across the market, you can move into the newly obliged category. Review your status if your arrangements with lenders change.
Does the exemption cover mortgage credit as well as consumer credit?
The tied intermediary concept originates in both consumer and mortgage credit intermediation law. Confirm the exact scope for your product type against the current AMLR text and your national regulator's guidance.
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