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How to resolve O365 'External Forwarding is not allowed' error when clients forward to G Workspace?

Summary

The error message '550 5.7.520 Access denied, Your organization does not allow external forwarding. Please contact your administrator for further assistance' indicates that the issue primarily stems from the sending organization's Office 365 (O365) security policies, rather than the recipient's G Workspace DMARC configuration. This O365 error means that the sender's Microsoft 365 environment is preventing emails from being automatically forwarded to external domains, a common default security measure to prevent spam and data exfiltration. While a DMARC policy set to 'reject' on the receiving G Workspace domain can lead to delivery issues for forwarded emails if authentication breaks, the initial bounce points directly to an O365 outbound policy restriction.

What email marketers say

Email marketers often encounter the 'external forwarding not allowed' error when setting up email flows involving different email providers. Their initial reactions might lean towards issues with DMARC or other authentication protocols on the receiving end. However, through discussion and troubleshooting, they often realize the core problem lies with the sender's O365 configuration. This highlights a common challenge in email deliverability: pinpointing the exact cause of a bounce when multiple authentication and security layers are at play.

Marketer view

Marketer from Email Geeks initially believed the problem was related to their DMARC 'p=reject' policy. They thought this policy was preventing the forwarded emails from being verified, leading to the bounce. This perspective is common when first implementing DMARC, as its impact on forwarded mail can be confusing.

01 Dec 2020 - Email Geeks

Marketer view

Marketer from Spiceworks Community notes that changing the new policy's priority to 0 or something with a higher priority than the default policy might be necessary. This suggests that even with a custom policy, its order of application can affect its effectiveness in allowing external forwarding.

15 Mar 2023 - Spiceworks Community

What the experts say

Email experts consistently emphasize that the 'external forwarding not allowed' error originates from Microsoft 365's internal security configurations, not the DMARC policy of the recipient domain. They highlight that O365's anti-spam outbound policies are designed to prevent automatic external forwarding by default. Experts also note the potential for forwarded emails to break authentication headers (like DKIM) which can lead to DMARC failures, but reiterate that the initial O365 bounce is distinct from such downstream issues.

Expert view

Expert UDEFP1J3B from Email Geeks states that the error message clearly indicates that O365 is configured not to allow automatic external forwarding. This is a direct interpretation of the error code, pinpointing the exact policy causing the bounce.

01 Dec 2020 - Email Geeks

Expert view

Expert from SpamResource.com advises checking the anti-spam outbound policy in Microsoft 365 Defender to resolve forwarding issues. This is a fundamental step for anyone managing O365 email security settings.

18 Jan 2024 - SpamResource.com

What the documentation says

Microsoft 365 documentation confirms that the '550 5.7.520' error is related to an organization's outbound anti-spam policy. By default, automatic external forwarding is often disabled for security purposes to prevent unauthorized data exfiltration or spam propagation. The documentation outlines the necessary steps within the Microsoft 365 Defender portal to modify these policies, either by creating exceptions for specific users or by globally enabling forwarding with caution. Google Workspace documentation, on the other hand, focuses on how to configure G Workspace for receiving mail, including considerations for DMARC and how it interacts with forwarded messages, often recommending methods that preserve authentication or advising on specific routing for domains with strict DMARC policies.

Technical article

Documentation from Office365Concepts.com states that the 550 5.7.520 error typically indicates that the organization's anti-spam outbound policy does not allow external forwarding. This resource provides a clear diagnosis of the Non-Delivery Report (NDR).

03 Mar 2024 - Office365Concepts.com

Technical article

Documentation from MSDigest.net recommends that the best practice for allowing automatic forwarding is to create a new custom outbound policy rather than updating the default policy. This ensures more controlled management of forwarding exceptions.

22 Oct 2022 - MSDigest.net

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