The EU financial authority explained the regulatory stance with regard to the following issue:
"Are third country entities (not subject to the reporting obligation when it came into force on 12 February), that have subsequently become financial counterparties in the EU (due to re-location or because they are managed by an AIFM which becomes authorised or registered under AIFMD), required to report trades that were entered into before they became subject to EMIR?"
So, the answer is:
"Yes. When a counterparty to a derivative contract that is outstanding establishes itself in the EU it becomes subject to the reporting obligation. This applies to all outstanding contracts, so that such counterparty's risks are known in the EU where that entity is now based. Non-reporting of those outstanding contracts would represent hidden risk that would be contrary to the EMIR / G20 reform objectives."
The logical implication is, before the relocation into the EU is effected due diligence process within the financial institution needs to identify and establish whether there are any derivatives contracts outstanding and ensure they are reported to the trade repository within the required deadlines.