You can't enable or configure moderation for certain kinds of distribution groups in Microsoft Office 365 dedicated/ITAR.
This issue occurs because distribution group moderation is currently supported only for a subset of group types in Office 365 dedicated/ITAR. Specifically, moderation may be enabled only for dynamic distribution groups.
To enable moderation for a dynamic distribution group, run the following Exchange Management Shell cmdlet:
Set-DynamicDistributionGroup <DDG Identity> -ModerationEnabled $TRUE –ModeratedBy <Moderator Identity>If you want to enable moderation for other kinds of groups, you should submit a design change request (DCR) through your service delivery manager (SDM) for possible inclusion in a future service pack.
Article ID: 2938837 - Last Review: Mar 17, 2016 - Revision: 1
Microsoft Business Productivity Online Dedicated, Microsoft Business Productivity Online Suite Federal