# Commission Delegated Regulation (EU) 2018/728 of 24 January 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for procedures for excluding transactions with non-financial counterparties established in a third country from the own funds requirement for credit valuation adjustment risk (Text with EEA relevance), Article 1

Extent: E+W+S+N.I.

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.

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Source: https://www.legislation.gov.uk/eur/2018/728/article/1 (the official version)
Page: https://openlegislation.uk/eu-regulation-2018-728/article-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.