Password policies are enforced at the identity provider where authentication occurs. According to the AWS Certified Security – Specialty Study Guide, when IAM is federated with an external identity provider such as on-premises Active Directory, IAM does not manage or enforce password policies. Instead, password requirements such as minimum length must be enforced directly in Active Directory Group Policy Objects.

Amazon Cognito user pools maintain their own user directory and authentication logic. Cognito provides configurable password policies, including minimum length, complexity, and expiration. To enforce a minimum password length for application users, the Cognito user pool password policy must be updated.

IAM password policies apply only to IAM users that authenticate directly with IAM and do not affect federated users or Cognito users. SCPs and IAM policies cannot enforce password length requirements.

Referenced AWS Specialty Documents:

AWS Certified Security – Specialty Official Study Guide

AWS IAM Federation and Password Policies

Amazon Cognito User Pool Security Settings