SOLVED 550 5.7.520 Access Denied Organization Does Not Allow External Forwarding

If you are receiving "Remote Server returned 550 5.7.520 Access denied Your organization does allow external forwarding" then you likely have outbound spam filter issue in your Microsoft 365 Exchange Online security settings which is easy to fix.

The full error is:

Delivery has failed to these recipients or groups:
recipient
Your message wasn't delivered because the recipient's email provider rejected it.
Diagnostic information for administrators:
Generating server: CO1PR13MB4949.namprd13.prod.outlook.com
recipient email address
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)'

We explain why email forwarding to outside addresses is disabled by default and why you may want to leave it that way.

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