Chapter 69: AWS Compliance

AWS Compliance

This is not just a list of certifications you paste on your website. It is a complete operating model — a combination of AWS responsibilities, your responsibilities, tools you use, documents you collect, and processes you follow — so that your product, your data, and your business stay legal, auditable, and trusted by customers, regulators, banks, and enterprise buyers.

In India 2026, especially in fintech, health-tech, ed-tech, SaaS, and any company handling personal data, compliance is no longer optional — it is a business gatekeeper.

Let me explain it like we’re sitting together with a whiteboard and a second cup of Irani chai — slow, clear, step-by-step, with real Hyderabad examples, current 2026 facts, and practical guidance you can use tomorrow.

1. The Two Big Buckets — What “AWS Compliance” Actually Means

When people say “AWS Compliance”, they usually mean one or both of these:

A. AWS’s own compliance posture (What AWS itself has achieved — certifications, attestations, reports you can read)

B. Your company’s compliance when using AWS (How you use AWS services in a compliant way — this is where 90 % of the work lives)

Both are important, but B is what keeps you awake at night.

2. Bucket A — AWS’s Compliance Posture (What AWS Gives You)

AWS invests massively in compliance so you don’t have to reinvent the wheel.

Most relevant certifications & reports for Indian companies in 2026:

Certification / Report What it proves Who usually cares in India? How to access it (2026)
SOC 1, SOC 2 Type II, SOC 3 Financial controls, security, availability, privacy Banks, fintech, SaaS selling to enterprises AWS Artifact (free download)
ISO 27001, 27017, 27018 Information security, cloud controls, PII protection Almost everyone — especially DPDP Act alignment AWS Artifact
PCI DSS Level 1 Card payment security Fintech, payment gateways, e-commerce AWS Artifact
HITRUST CSF Healthcare security & privacy Health-tech, insurance AWS Artifact
IRAP (Australian) / MTCS (Singapore) Regional government-level security Some cross-border customers AWS Artifact
MeitY empanelment Indian government empanelment Government & PSU contracts AWS public compliance page + MeitY portal
RBI guidelines alignment Financial sector cloud usage guidelines Banks, NBFCs, payment aggregators AWS RBI compliance whitepaper + Artifact reports

Key takeaway (2026 reality):

AWS already holds most major global and regional certifications that Indian regulators and enterprises care about. Your job is not to get AWS certified — your job is to prove you used AWS in a compliant way.

3. Bucket B — Your Compliance Responsibility (Where the Real Work Lives)

This is the Shared Responsibility Model applied to compliance.

AWS gives you compliant building blocks. You have to assemble them correctly.

Compliance Area AWS Provides the Tools / Reports You (the customer) Must Do Typical Hyderabad company task (2026)
Data Residency Regions in India (ap-south-1 Mumbai, ap-south-2 Hyderabad) Keep regulated data in India Regions Use ap-south-2 for all personal data
Encryption KMS, ACM, SSE-KMS, EBS/RDS encryption Enable encryption at rest & in transit everywhere KMS customer-managed keys on S3/EBS/RDS
Access Control IAM, IAM Identity Center, bucket policies, SCPs Least privilege, no long-lived keys, MFA everywhere SSO + roles, no 0.0.0.0/0 security groups
Logging & Auditability CloudTrail, CloudWatch Logs, GuardDuty, Security Hub Enable CloudTrail (multi-region), GuardDuty, log retention CloudTrail + Security Hub dashboard
Data Protection / DPDP Act Macie, KMS, S3 Object Lock, VPC endpoints Classify data, encrypt PII, enable Macie, use Object Lock Macie scans S3 for Aadhaar/PAN leaks
Incident Response & Breach Notification GuardDuty, Security Hub, AWS Incident Response Have IR plan, enable GuardDuty, test notification flow 72-hour breach notification process
Compliance Evidence AWS Artifact, AWS Compliance reports Collect reports, run AWS Audit Manager assessments SOC 2 Type II report for enterprise deal

4. Real Hyderabad Example — Full Compliance Setup (Fintech 2026)

Your startup “PayTelugu” (UPI wallet & payment app):

Regulatory pressure:

  • RBI guidelines for payment aggregators
  • DPDP Act 2023 (personal data protection)
  • Upcoming MeitY cloud empanelment requirement

What they built (very typical production pattern):

  1. Region choice All resources in ap-south-2 (Hyderabad) — data residency satisfied
  2. Encryption everywhere
    • S3 SSE-KMS (customer-managed key)
    • EBS & RDS encrypted
    • ACM certificate on ALB → HTTPS enforced
    • VPC endpoints for S3/DynamoDB → no public internet traffic
  3. Access control
    • IAM Identity Center + Google Workspace SSO
    • No IAM user access keys — only roles
    • SCP in AWS Organizations → deny public S3 buckets, deny disabling CloudTrail
    • Security Groups → RDS allows 5432 only from ECS task SG
  4. Logging & monitoring
    • CloudTrail multi-region trail → logs to encrypted S3 bucket (lifecycle → Glacier after 90 days)
    • GuardDuty + Security Hub → alerts on compromised keys, crypto-mining
    • Macie → scans all S3 buckets for PII (Aadhaar, PAN, phone) → alerts on exposure
  5. Backup & immutability
    • AWS Backup — centralized plan for RDS, EFS, EBS, DynamoDB
    • S3 Object Lock on compliance bucket (7-year retention for transaction logs)
  6. Compliance evidence
    • Download SOC 2 Type II, PCI DSS, ISO 27001 reports from AWS Artifact
    • Run AWS Audit Manager assessment for RBI guidelines & DPDP Act controls
    • Share reports with RBI auditors / enterprise clients

Monthly compliance-related cost:

  • GuardDuty + Security Hub + Macie → ~₹4,000–12,000
  • CloudTrail storage → ~₹500–2,000
  • KMS + Secrets Manager → ~₹500–1,500
  • Total: ₹5,000–18,000/month (cheap compared to RBI fine or breach cost)

5. Quick Hands-On – Feel Basic Compliance Setup

  1. Enable CloudTrail (multi-region) → logs to encrypted S3 bucket
  2. Enable GuardDuty → wait 24 h → see first findings
  3. Enable Macie → create sensitive data discovery job on S3 buckets
  4. Create AWS Config rule: “S3 bucket should have server-side encryption”
  5. Download SOC 2 report from AWS Artifact (free)

Summary Table — AWS Compliance Cheat Sheet (2026 – India Focus)

Compliance Goal Primary AWS Tools / Actions Golden Rule / Best Practice
Data residency (RBI, DPDP) Use ap-south-1 or ap-south-2 Regions Keep regulated personal data in India Regions
Encryption at rest & transit KMS, ACM, SSE-KMS, TLS enforcement Enable by default on S3, EBS, RDS, Redshift, etc.
Least privilege & access control IAM Identity Center (SSO), IAM roles, SCPs No long-lived keys, no 0.0.0.0/0 security groups
Logging & audit trail CloudTrail (multi-region), GuardDuty, Security Hub Enable CloudTrail & GuardDuty day 1 — encrypt logs
PII & sensitive data discovery Amazon Macie Enable on all S3 buckets — auto-classify & alert
Backup & immutability AWS Backup, S3 Object Lock Object Lock for 7-year retention on compliance data
Compliance evidence & reporting AWS Artifact, AWS Audit Manager Download SOC/PCI/ISO reports + run Audit Manager assessments

Teacher’s final note (real talk – Hyderabad 2026):

Compliance is 20 % AWS certifications and 80 % your configuration discipline.

The biggest compliance failures in India right now are not AWS failing — they are:

  • Public S3 buckets with Aadhaar/PAN
  • Overly permissive IAM roles leaked on GitHub
  • No encryption on RDS/EBS
  • No CloudTrail → no audit trail for RBI auditors
  • No GuardDuty → blind to attacker activity

Do these five things religiously and you’ll be safer & more compliant than most:

  1. Use ap-south-2 (Hyderabad) for regulated data
  2. Encrypt everything (KMS, SSE, TLS)
  3. Least privilege everywhere (SSO + roles, tight security groups)
  4. Enable CloudTrail + GuardDuty + Security Hub
  5. Use S3 Object Lock for compliance retention

Got it? This is the “stay legal, stay trusted, stay in business” lesson.

Next?

  • Step-by-step: Enable Macie + GuardDuty + Security Hub in a new account?
  • Deep dive: How to use AWS Audit Manager for RBI/DPDP compliance?
  • Or how to configure S3 Object Lock for 7-year immutability?

Tell me — next whiteboard ready! 🚀🔐

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