Deployment of Smart Cards for Identity Verification requires collection of credentials and provisioning of credentials from and to heterogeneous and sometimes legacy systems. To facilitate this process, a centralized identity store called Identity Management System (IDMS) is often used. To protect the integrity, confidentiality and privacy of the credential data that is collected, stored and disseminated through IDMS, a sophisticated set of policies governing data flows, processing and distribution are required. In this paper, we present a policy specification and enforcement framework using XML, XML Schemas and XSLT that was developed for secure management of the infrastructure system used for a large scale smart ID card deployment.