Starting with Windows NT 5.0, AKA Windows 2000, the NTFS file system allowed you to encrypt files and folders.
To prevent encryption from being used on a computer:
1. Copy / Paste the following to a DisableEFs.reg file:
REGEDIT4
\[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\EFS\]
"EfsConfiguration"=dword:00000001
2. Merge the DisableEFs.reg file with the computer's registry.
3. Shutdown and restart Windows.
When anyone attempts to encrypt a file system object, the will receive an error message.
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