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1. The service provider shall be selected by the Commission among entities complying with the following eligibility criteria:

(a) the service provider shall be established and have its operational seat in the territory of a Member State;

(b) the service provider and its subcontractors shall not be:

(i) subject to Union restrictive measures adopted pursuant to Article 29 TEU or Article 215 TFEU, consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze; or (ii) directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies subject to such Union restrictive measures.

2. Without prejudice to other due diligence obligations, contractual obligations between the Commission and the service providers shall be put in place to ensure that the service provider when carrying out its tasks under Article 45 does not make any funds or economic resources available, directly or indirectly, to or for the benefit of natural or legal persons, entities or bodies:

(a) subject to Union restrictive measures adopted pursuant to Article 29 TEU or Article 215 TFEU, consisting of a prohibition to make available or transfer funds or economic resources or to provide financing or financial assistance to them directly or indirectly, or of an asset freeze; or (b) directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies subject to such Union restrictive measures.

3. The service provider shall not be part of a vertically integrated undertaking, except for an entity unbundled in accordance with Chapter IX of Directive (EU) 2024/1788.