The US Department of Homeland Security (DHS) has issued a binding directive on all federal services, demanding they stop using Kaspersky software within 90 days over concerns about the Russian company's ties to the Kremlin.
In a statement, DHS gives federal organizations 30 days to locate Kaspersky Lab's products in their networks and remove them in the next 60 days.
"This action is based on the security risks of information presented by the use of Kaspersky products on federal systems," DHS said.
"The company's products and the Kaspersky Anti-Virus provide widespread access to privileged files on the computers on which the software is installed which can exploit malicious users to compromise these systems."
According to DHS, there are regulations under Russian law that allow Russian intelligence services to request or force Kaspersky Lab to access communications via Russian networks.
"The danger lies in the fact that the Russian government, either alone or in cooperation with Kaspersky, could leverage the access provided by Kaspersky Lab products to breach federal information systems, which directly affects US national security."
DHS will allow Kaspersky to file a written request for any objections, and the Reuters reports that Kaspersky has already rejected allegations of espionage.
"There is no reliable evidence data to be presented publicly by any organization, and the accusations are based on false claims and inaccurate assumptions,” Kaspersky Lab said.
In July, the Trump administration has withdrawn Kaspersky Lab from two approved lists sellers who used government services to purchase technology equipment.
Reuters said at the time that Kaspersky's products were removed from the General Agency's (GSA) supplier list for contracts covering information technology services and digital photography latest technology equipment.
However, according to the guidelines, government agencies were still able to use Kaspersky's products purchased separately from the GSA procurement process.
The move comes amid accusations by US intelligence agencies that Russia has managed to infiltrate Democratic Party emails, thus aiding Donald Trump's election victory, despite President Vladimir Putin's announcement that his country is not has never been involved in hacking activities, but some "patriots."
Speaking with reporters in Sydney in June, Eugene Kaspersky said he would not be surprised to learn that there was a Russian intervention in the recent US elections.
"It is not surprising if there was intervention by Russian hackers, unfortunately I have no data because we were not involved in the investigation," said Kaspersky Lab chief.
