How to Fix “Your organization does not allow external forwarding.” Microsoft 365

Remote Server returned ‘550 5.7.520 Access denied, Your organization does not allow external forwarding. Please contact your administrator for further assistance. AS(7555)

With an email box set to auto-forward to an external email. But you received an error message like the above.

Here is the solution:

If the admin wants external email forwarding, the admin must change the default Outbound spam filter policy under Anti-spam settings.

Access to Security & Compliance admin center > Threat management > Policy > Anti-spam > Outbound spam filter policy > Turn on Automatic forwarding.