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The recipient could not be processed because it would violate the security policy in force

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The recipient could not be processed because it would v... - 10.Sep.2014 3:48:41 PM   
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Joined: 10.Sep.2014
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I have a user that is getting a NDR from the sending server complaining about violating a security policy to send the message. This is the error that I received below:

The recipient could not be processed because it would violate the security policy in force
<mail.server.local #5.7.0 smtp;550 5.7.0 Local Policy Violation>


I looked into the SMTP protocol settings and I have no authentication requirements upon the sender and requiring TLS is unclicked, which several people mentioned in other threads. Since that doesn't apply here I am somewhat lost. I haven't used Exchange 2003 in some time as most of my clients are on 2007/10 at this point, but I figured that I would inquire whether anybody knows what other potential culprits would cause this error?
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