CMMC Practice SC.L2-3.13.11

CUI Encryption: Employ FIPS-validated cryptography when used to protect the confidentiality of CUI.

Monarch ISC Guidance

An organization must have practices, policy and a formal plan to implement encryption for CUI that is processed, stored, and/or transmitted on it's systems. Such a plan must include the cryptographic systems that meet the CMVP compliance standard, but also key management practices, and clear procedures to guide those with administrator responsibilities for the program. Note that the FIPS-approved modules are required whenever the encryption is protecting the data when it leaves the physically controlled areas of your infrastructure, such as VPN's, wireless networks, or a laptop or mobile device on the move. It is not required on local networks, and specific exceptions for SD-WAN/MPLS have been made.

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Discussion From Source

NIST SP 800-171 R2 Cryptography can be employed to support many security solutions including the protection of controlled unclassified information, the provision of digital signatures, and the enforcement of information separation when authorized individuals have the necessary clearances for such information but lack the necessary formal access approvals. Cryptography can also be used to support random number generation and hash generation. Cryptographic standards include FIPS-validated cryptography and/or NSA-approved cryptography.