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I have lots of DOCX and PDF documents in a Document Library on my SharePoint 2016 Online Site. I need to sort the documents out so I hired a remote worker to do it. Basically his/her work consists of opening a document, reading the contents, determining the document type and moving the file to a folder corresponding to that class.

How I can configure the SharePoint Permissions to this Document Library so that the worker had access to only reading and moving files? Specifically I would like to deny any documents downloads, any linkage to third parties, etc.

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    With traditional permissions, this isn't possible. In order to move an item, like a traditional file server, this would require Delete rights, which implies write (and download) rights. You could look at a workflow using an impersonation step that they could execute to migrate the item to a new location.
    – Trevor Seward ♦
    Dec 11, 2017 at 23:00

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As Trevor mentioned, moving file requires Delete permission.

Additionally, users will have permission to download files if they have permission to view the files by design.

To achieve your requirement, you need to create a custom action which moves files using impersonate identity and protect downloaded files using Azure RMS: https://docs.microsoft.com/en-us/information-protection/understand-explore/azure-rms-problems-it-solves

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  • A custom action solves the problem if it was a on-prem SP where the custom action could impersonate the movement via service account. (remember that we should deny downloads to user) - what do you think?
    – Anand
    Feb 1, 2019 at 20:01

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