Section 14 of PMLA : Section 14: No Civil Or Criminal Proceedings Against Reporting Entity, Its Directors And Employees In Certain Cases

Explanation using Example

Imagine a bank manager, Mr. Sharma, notices several suspicious transactions in a customer's account that suggest money laundering. Following the protocols under the Prevention of Money-Laundering Act, he files a report with the Financial Intelligence Unit (FIU) detailing these transactions. Later, the customer learns about this report and decides to sue Mr. Sharma and the bank for defamation.

Under Section 14 of the Prevention of Money-Laundering Act, 2002, Mr. Sharma and the bank are protected from such civil or criminal proceedings because they reported the suspicious transactions in good faith and in compliance with their legal obligations. This means that the customer's lawsuit would not be successful, as the act of reporting was done as per the requirements of the law, which safeguards entities and individuals who report in accordance with Section 12.