diff --git a/libraries/iam_password_policy.rb b/libraries/iam_password_policy.rb
new file mode 100644
index 000000000..2b709bcd0
--- /dev/null
+++ b/libraries/iam_password_policy.rb
@@ -0,0 +1,52 @@
+# author: Viktor Yakovlyev
+
+require 'aws_conn'
+
+class IamPasswordPolicy < Inspec.resource(1)
+  name 'iam_password_policy'
+  desc 'Verifies iam password policy'
+
+  example "
+    describe iam_password_policy('i-123456') do
+      its('requires_lowercase_letters?') { should be true }
+    end
+
+    describe iam_password_policy('i-123456') do
+      its('requires_uppercase_letters?') { should be true }
+    end
+  "
+
+  def initialize(conn = AWSConnection.new)
+    @policy = conn.iam_resource.account_password_policy
+  rescue Aws::IAM::Errors::NoSuchEntity
+    @policy = nil
+  end
+
+  def exists?
+    !@policy.nil?
+  end
+
+  def requires_lowercase_characters?
+    @policy.require_lowercase_characters
+  end
+
+  def requires_uppercase_characters?
+    @policy.require_uppercase_characters
+  end
+
+  def minimum_password_length
+    @policy.minimum_password_length
+  end
+
+  def requires_numbers?
+    @policy.require_numbers
+  end
+
+  def requires_symbols?
+    @policy.require_symbols
+  end
+
+  def allows_users_to_change_password?
+    @policy.allow_users_to_change_password
+  end
+end
diff --git a/test/unit/resources/iam_password_policy_test.rb b/test/unit/resources/iam_password_policy_test.rb
new file mode 100644
index 000000000..ed0583458
--- /dev/null
+++ b/test/unit/resources/iam_password_policy_test.rb
@@ -0,0 +1,26 @@
+require 'helper'
+require 'iam_password_policy'
+require 'aws-sdk'
+require 'json'
+
+class IamPasswordPolicyTest < Minitest::Test
+  def setup
+    @mockConn = Minitest::Mock.new
+  end
+
+  def test_policy_exists_when_policy_exists
+    @mockResource = Minitest::Mock.new
+    @mockResource.expect :account_password_policy, true
+    @mockConn.expect :iam_resource, @mockResource
+    assert_equal true, IamPasswordPolicy.new(@mockConn).exists?
+  end
+
+  def test_policy_does_not_exists_when_no_policy
+    @mockResource = Minitest::Mock.new
+    @mockResource.expect :account_password_policy, nil do |args|
+      raise Aws::IAM::Errors::NoSuchEntity.new nil, nil
+    end
+    @mockConn.expect :iam_resource, @mockResource
+    assert_equal false, IamPasswordPolicy.new(@mockConn).exists?
+  end
+end
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