Article 1
1. For the purposes of point (a) of Article 382(4) of Regulation (EU) No 575/2013, institutions shall consider as non-financial counterparties established in a third country, counterparties that meet both of the following conditions: (a) they are established in a third country; (b) they would qualify as a non-financial counterparty within the meaning of point (9) of Article 2 of Regulation (EU) No 648/2012 if they were established in the Union. 2. Institutions shall verify whether a counterparty is a non-financial counterparty established in a third country: (a) at trade inception when trading with a new counterparty; (b) on an annual basis for existing counterparties; (c) where there is reason to believe that the counterparty is no longer a non-financial counterparty established in a third country. 3. Institutions shall substantiate their opinion that an undertaking is a non-financial counterparty established in a third country.