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When AD is connected to IAM identity center, it is primarily used as a Identity provider. The policies in AD does not have any effect on Identity center. IAM Identity Center uses the connection provided AD to synchronize user, group, and membership information from your source directory in Active Directory to the IAM Identity Center identity store. No password information is synchronized to IAM Identity Center, since user authentication takes place directly from the source directory in Active Directory. This identity data is used by IAM Identity Center enabled applications to facilitate in-app lookup, authorization, and collaboration scenarios without passing LDAP activity back to the source directory in Active Directory.
Additional info can be found at https://docs.aws.amazon.com/singlesignon/latest/userguide/manage-your-identity-source-ad.html
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