An information handling system including a receiver for inbound data destined for delivery to a network node, an encryption recognition engine operable to identify whether the inbound data received by the receiver is encrypted and an encryption policy application engine operable to apply encryption policy to the inbound data on the basis of encryption properties identified by the encryption recognition engine in the inbound data. The system may further include an encryption engine operable to selectively encrypt the inbound data on the basis of the encryption policy as applied by the encryption policy application engine and a packet delivery engine operable to deliver the inbound data to its destination.