The extension of the deadline for registering with Her Majesty's Revenue & Customs (HMRC) under the government's new Money Laundering Regulations shouldn't lull recruiters into a false sense of security, a solicitor has warned.

HMRC announced on 26 April that the original deadline for recruiters supplying directors, partners to partnerships or those in similar positions to register with HMRC had been extended from 1 April to 31 May.

Anyone caught by the legislation who continued trading after the original deadline would have been trading illegally, and subject to a £5,000 fine. However, Frances Lewis, a partner at Blake Lapthorn Tarlo Lyons, solicitors told Recruiter that although the delay gave recruiters caught by the legislation more time to register, the legal position remained the same.

"It is a criminal offence [for those caught by the Act] not to be registered, and therefore unless the position changes you have to go ahead and register.

"This is not like a civil offence," Lewis warned. "It's not something that businesses can pick and choose. This is different. This is a lot more onerous."

According to figures provided to Recruiter by HMRC, only 68 recruitment agencies had registered with them as of 28 February.

Steve Huxham, chairman of the Recruitment Society, told Recruiter that extending the deadline was "good news" as it gave recruiters "a bit of a breather". However, he said the real problem was that recruiters didn't know whether to register or not. "I hope that HMRC uses these two months to communicate the message as to who does and who doesn't need to register," he said.

Anne Fairweather, head of public policy at the Recruitment & Employment Confederation (REC), told Recruiter that recruiters should not be unduly concerned.

The REC's arguments at a 19 March meeting with the Treasury that money laundering legislation was not appropriate for the industry had been "warmly responded to", she said.