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Requirement -

  1. User can send email only in internal domain.
  2. Restrict user to receive email from outside domain, User can accept only internal domain emails.

Important: - Basically there was a requirement if there is any suspected employee (eg. serving Notice Period) who tries to email important/critical data to external users then that mail should be forwarded to his/her manager for approval and can take appropriate action (Approve or Reject). Even it should be done from external emails as well then below steps will help you to achieve your requirement, in this case we have to create 2 different Mail Flow Rule as explained below-

Let's Proceed with Creation -

1- Login to your Office 365 Admin portal and go to Exchange administration.
2- Go into the “Mail Flow” section.
3- Click the add button and select the option to create a new rule.
4- The new transport rule window will be displayed.
A- Give your transport rule an appropriate name (Block email to external domain)
B- Click the “more options” link at the bottom of the window.
5- Apply this rule if > The sender is > Put the email id of internal users whom you want to apply this rule
6- add condition
7- The recipient is located > Outside the organization
8- Do the following > Forward the message for approval to > Put his/her manager's email id whom you want to receive approval email.
9- Click on Save button

Important - After you create or modify a mail flow rule, it can take up to 30 minutes for the new or updated rule to be applied to messages.

1- Login to your Office 365 Admin portal and go to Exchange administration.
2- Go into the “Mail Flow” section.
3- Click the add button and select the option to create a new rule.
4- The new transport rule window will be displayed.
A- Give your transport rule an appropriate name (Block email from external domain)
B- Click the “more options” link at the bottom of the window.
5- Apply this rule if > The sender is located > Outside the organization
6- add condition
7- The recipient is > Put the email id of user whom you want to apply this rule
8- Do the following > Forward the message for approval to > Put his/her manager's email id whom you want to receive approval email.
9- Click on Save button