An apparatus and method for restricting the functions of a device are provided. A restriction monitoring system includes a communication system that provides a location-limited communication channel that detects whether a device entering a perimeter is in an area for device inspection, a server that provides a credential and a security policy to the device and receives a report on whether the device violates the security policy through the location-limited communication channel, and an alarm system which triggers a security alarm when the device violates the security policy.