diff --git a/private/vold_prepare_subdirs.te b/private/vold_prepare_subdirs.te
index 1dc00b2..44c9ea5 100644
--- a/private/vold_prepare_subdirs.te
+++ b/private/vold_prepare_subdirs.te
@@ -75,6 +75,15 @@
   type_transition vold_prepare_subdirs storage_area_app_dir:dir storage_area_dir;
 
   selinux_check_context(vold_prepare_subdirs)
+
+  allowxperm vold_prepare_subdirs storage_area_dir:dir ioctl FS_IOC_SET_ENCRYPTION_POLICY;
+')
+
+is_flag_enabled(RELEASE_UNLOCKED_STORAGE_API, `
+  neverallowxperm vold_prepare_subdirs {
+    data_file_type
+    -storage_area_dir
+  }:dir ioctl FS_IOC_SET_ENCRYPTION_POLICY;
 ')
 
 # Migrate legacy labels to apex_system_server_data_file (b/217581286)