Is Engineering software asking us to do CIA job?

How are each institutions managing the access to engineering software that are requesting not to allow staff or students from the entities listed on the  US Embargo List in not accessing the software?  Please be aware that this embargo list is over 500 people and companies.

It is challenge as we are being asked to do the CIA job, certain staff and students may not be on the UK embargo list for visa, so can legitimately work and study in the UK, then engineering software because of commercial contracts with USA defence and government are saying they cannot use their software for work or studies.  Therefore there is can of worms legal front.

Also the list is over 500 pages long, people have alias are listed,  we certainly don’t have capacity to check every student and staff against this list.

We are investigating if MS Azura has built in checks, as we are using MS Azura cloud platform to service our engineering software to staff and students.

However, what other School/Department tackling being asked to do CIA job by the back door.