Prerequisites
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You must be a Microsoft 365 administrator with sufficient privileges to modify anti-spam / outbound policies.
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Be aware of your organization’s security policies: enabling forwarding across all mailboxes can have security implications (data leak risk, etc.).
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Access to Microsoft 365 Defender / Security admin center.
Steps
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Log in to the Microsoft 365 Defender portal as an administrator:
Navigate to Email & Collaboration → Policies & rules → Threat policies → Anti-spam policies
Find the Anti-spam outbound policy (Default).
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Click Edit protection settings (or similar edit link) for that outbound policy.
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Scroll to the Forwarding Rules section.
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Locate the dropdown for Automatic Forwarding Rules and set it to “On – Forwarding is enabled.”
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Save the policy.
Aftermath / Considerations
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The change applies to all users in the tenant, meaning any mailbox can now forward externally (if user-level forwarding settings also allow it).
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Monitor for misconfigurations or unintended forwarding rules (may affect compliance, security).
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If external forwarding is still blocked for some users, there might be additional policies, transport rules, or settings that override or block external forwarding. In that case contact Microsoft 365 support.