diff --git a/src/main/java/com/knecon/fforesight/tenantusermanagement/service/TenantManagementService.java b/src/main/java/com/knecon/fforesight/tenantusermanagement/service/TenantManagementService.java
index 3f50796..6049042 100644
--- a/src/main/java/com/knecon/fforesight/tenantusermanagement/service/TenantManagementService.java
+++ b/src/main/java/com/knecon/fforesight/tenantusermanagement/service/TenantManagementService.java
@@ -85,7 +85,7 @@ public class TenantManagementService implements TenantProvider {
     @SneakyThrows
     public TenantResponse createTenant(TenantRequest tenantRequest) {
 
-        log.info("Tenants are: {}", tenantRepository.findAll().stream().map(TenantEntity::getTenantId).collect(Collectors.toList()));
+        log.info("Tenants are: {}", tenantRepository.findAll().stream().map(TenantEntity::getTenantId).toList());
         log.info("Requested to create tenant for: {}", tenantRequest.getTenantId());
 
         try {
@@ -297,7 +297,7 @@ public class TenantManagementService implements TenantProvider {
         rolesRepresentation.setRealm(roles);
         realm.setRoles(rolesRepresentation);
 
-        realm.setUsers(users.stream().map(this::toUserRepresentation).collect(Collectors.toList()));
+        realm.setUsers(users.stream().map(tenantUser -> toUserRepresentation(tenantId, tenantUser)).toList());
 
         realm.setPasswordPolicy("digits(1) and length(12) and lowerCase(1) and notEmail and notUsername and specialChars(1) and upperCase(1)");
 
@@ -315,11 +315,11 @@ public class TenantManagementService implements TenantProvider {
     }
 
 
-    private UserRepresentation toUserRepresentation(TenantUser redUser) {
+    private UserRepresentation toUserRepresentation(String tenantId, TenantUser redUser) {
 
         var credentialRepresentation = new CredentialRepresentation();
-        credentialRepresentation.setType("password");
-        validatePasswordWithPolicy(redUser.getPassword(), redUser.getUsername(), redUser.getEmail());
+        credentialRepresentation.setType(CredentialRepresentation.PASSWORD);
+        validatePasswordWithPolicy(tenantId, redUser.getPassword(), redUser.getUsername(), redUser.getEmail());
         credentialRepresentation.setValue(redUser.getPassword());
 
         var user = new UserRepresentation();
@@ -346,10 +346,14 @@ public class TenantManagementService implements TenantProvider {
     }
 
 
-    private void validatePasswordWithPolicy(String password, String username, String email) {
+    private void validatePasswordWithPolicy(String tenantId, String password, String username, String email) {
 
-        if (password.equals(username) || !validateEmailIsNotPassword(email, password) || !checkStringContainsUpperCaseAndLowerCaseAndDigitsAndSpecialCharsAndHasLength(password)) {
-            throw new ResponseStatusException(HttpStatus.BAD_REQUEST, "Password does not match password policy.");
+        var realmPasswordPolicy = realmService.realm(tenantId).toRepresentation().getPasswordPolicy();
+        if(realmPasswordPolicy == null || realmPasswordPolicy.isEmpty()) {
+            // KC has no policy set, thus we validate it manually
+            if (password.equals(username) || !validateEmailIsNotPassword(email, password) || !checkStringContainsUpperCaseAndLowerCaseAndDigitsAndSpecialCharsAndHasLength(password)) {
+                throw new ResponseStatusException(HttpStatus.BAD_REQUEST, "Password does not match password policy.");
+            }
         }
     }
 
@@ -481,7 +485,7 @@ public class TenantManagementService implements TenantProvider {
 
     public List<TenantResponse> getTenants() {
 
-        return tenantRepository.findAll().stream().map(this::convert).collect(Collectors.toList());
+        return tenantRepository.findAll().stream().map(this::convert).toList();
     }