MSS calls a user-replaceable module, dfhucryp.gnt located in both %ProgramFiles(x86)%\Micro Focus\Studio Enterprise Edition x.x\base\bin and \base\bin\win64, to perform encryption and decryption of user passwords. The installed module does not actually perform any encryption; that is, the encrypted password is the same as the unencrypted password. You can replace this module with one that implements a password encryption and decryption strategy appropriate for your site.
The example module, dfhucry1.gnt, that implements a simple encryption and decryption scheme, is supplied. The source (.cbl) form is provided in %ProgramFiles(x86)%\Micro Focus\Studio Enterprise Edition x.x\base\source and \base\source\win64. It uses the number of 1 bits in the user ID as a shift count and a pair of encipher and decipher tables.