Sections 14 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 14 protects a reporting entity, its directors and its employees from civil or criminal proceedings for furnishing information to the Director under section 12(1)(b), save as section 13 provides. Section 15 lets the Central Government, in consultation with the Reserve Bank of India, prescribe the procedure and manner of maintaining and furnishing information under the Chapter's main duties.
This article reads both sections from the consolidated text of the Act consulted (amendments shown up to 1 August 2019). Later amendments, rules and notifications should be checked; nothing after that date is stated here.
Section 14: save as section 13 provides, a reporting entity, its directors and employees are not liable to civil or criminal proceedings for furnishing information under section 12(1)(b). Section 15: the Central Government may, in consultation with the Reserve Bank of India, prescribe the procedure and manner of maintaining and furnishing information under section 11A, section 12(1) and section 12AA(1). Neither section prints a form, time or portal.
Section 14: no civil or criminal proceedings
The heading of section 14 reads "No civil or criminal proceedings against reporting entity, its directors and employees in certain cases". The section itself says:
"Save as otherwise provided in section 13, the reporting entity, its directors and employees shall not be liable to any civil or criminal proceedings against them for furnishing information under clause (b) of sub-section (1) of section 12."
Section 14 was substituted by Act 2 of 2013, section 12 (w.e.f. 15-2-2013), as the footnote prints.
| Element | What the text says |
|---|---|
| Who is protected | The reporting entity, its directors and employees |
| What is protected | Furnishing information under clause (b) of section 12(1) |
| From what | Any civil or criminal proceedings against them |
| Exception | "Save as otherwise provided in section 13" |
Four points on the wording deserve attention.
- Clause (b) only. The protection is tied to clause (b) of section 12(1), the duty to furnish to the Director, within the time prescribed, information on transactions, whether attempted or executed. It is not stated to cover the other duties in section 12, the verification in section 11A or the steps in section 12AA.
- The words are about furnishing. The section protects "for furnishing information". It does not say that the entity may do what it likes in other respects.
- Section 13 stays open. Section 13 lets the Director inquire into the obligations of a reporting entity under the Chapter and impose a warning, directions or a monetary penalty. The "save as" opening keeps that power. How the two interact in a particular case is a matter for reading both sections; see our article on section 13.
- Directors and employees are named. The protection covers individuals associated with the reporting entity as well as the entity.
If your entity or your staff want to understand how this protection reads alongside the duty to furnish and the Director's powers, a legal consultation can help you work through the text.
The duty that section 14 protects
Section 12(1)(b) requires every reporting entity to furnish to the Director, within such time as may be prescribed, information relating to transactions, whether attempted or executed, the nature and value of which may be prescribed. That duty is explained in our article on section 12. The text consulted does not name the kinds of report that follow, and our general guides on suspicious transaction reporting and cash transaction reporting describe them in general terms.
Section 15: procedure and manner of furnishing information
Section 15's heading reads "Procedure and manner of furnishing information by reporting entities". The section says:
"The Central Government may, in consultation with the Reserve Bank of India, prescribe the procedure and the manner of maintaining and furnishing information by a reporting entity under section 11A, sub-section (1) of section 12 and sub-section (1) of section 12AA for the purpose of implementing the provisions of this Act."
Section 15 was substituted by Act 2 of 2013, section 13 (w.e.f. 15-2-2013). The footnote also records that the list of provisions, "section 11A, sub-section (1) of section 12 and sub-section (1) of section 12AA", was substituted for "sub-section (1) of section 12" by Act 23 of 2019, section 196 (w.e.f. 1-8-2019). That wording is history only.
| Provision named | Subject | Explained in |
|---|---|---|
| Section 11A | Verification of identity | Sections 11 and 11A |
| Section 12(1) | Transaction records, reports and identity records | Section 12 |
| Section 12AA(1) | Enhanced due diligence | Section 12AA |
What section 15 does and does not say
- It is a power ("may"), not a duty on the Central Government.
- It requires consultation with the Reserve Bank of India before the procedure and manner are prescribed.
- It covers both maintaining and furnishing information.
- It does not itself prescribe any procedure, form, format, interval or portal. The Act as consulted gives none, and this article names none.
- It does not mention the Financial Intelligence Unit or any regulator other than the Reserve Bank of India, and this article does not either.
The procedure and manner that the Central Government prescribes under this section are found in rules, which are outside the section. The Maintenance of Records Rules, 2005 exist as a separate set of rules under the Act; our articles on those rules start with records of transactions and reports to the Director. Rules for other purposes under the Act are not in the sources consulted.
How the two sections work together
Section 12 and the related sections create the duties. Section 14 protects the act of furnishing under one of them, and section 15 allows the manner of performing those duties to be prescribed. The reporting entity that follows the prescribed procedure and manner, and furnishes the information required under section 12(1)(b), is within the words of section 14. The text consulted does not link the protection in section 14 to compliance with the procedure under section 15, and this article does not read such a link in.
An illustration
The names are invented. Crestline Bank Ltd, a banking company, furnishes to the Director information about a transaction that its compliance officer, Mr Nitin Bhalla, considers falls within the information prescribed under section 12(1)(b). The customer later threatens a civil claim against the bank and Mr Bhalla for having reported. Section 14 says that, save as section 13 provides, the reporting entity, its directors and employees shall not be liable to any civil or criminal proceedings for furnishing information under clause (b). The protection is for furnishing under clause (b); a different act, such as failing to keep records, is not within the section.
Need help understanding your reporting position?
The protection in section 14 is narrow in its terms, and the procedure under section 15 sits in rules. We can read both with your reporting practice through legal consultation.
Key takeaways
- Section 14 protects a reporting entity, its directors and employees from civil or criminal proceedings for furnishing information under section 12(1)(b).
- The protection is subject to section 13.
- Section 15 lets the Central Government, in consultation with the Reserve Bank of India, prescribe the procedure and manner of maintaining and furnishing information under section 11A, section 12(1) and section 12AA(1).
- Both sections were substituted by Act 2 of 2013 (w.e.f. 15-2-2013); the list in section 15 was altered by Act 23 of 2019 (w.e.f. 1-8-2019).
- Neither section prints a form, time limit, interval or portal step.
Read next
- Section 12: reporting entity to maintain records
- Section 13: powers of Director to impose fine on a reporting entity
- Section 16: power of survey
- PMLA 2002 and money laundering compliance for banks, NBFCs and businesses
Disclaimer: Based on the consolidated text of the Prevention of Money-laundering Act, 2002 published by the Enforcement Directorate, showing amendments up to Act 23 of 2019 (1 August 2019), and on the Department of Revenue consolidated copy of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 listing amendments up to 19 July 2024, as consulted on 2 October 2026. Later amendments, notifications, other rules and regulator directions should be checked. This article is general information, not legal advice; check the official text before acting.