To adopt the cloud services on a wide scale by businesses and individuals, it is necessary for cloud providers to provide adequate accountability and policy monitoring techniques to protect against an increasing number of threats, since security is the predominant issue of cloud services. Currently there is no widely accepted methodology or toolset to technically achieving secure services in cloud computing. This paper emphasizes secure Cloud Computing services using policy monitoring and virtualization technique. Policy monitoring is a continuous process based on regulatory compliance, information risk, based on service requirements, cloud business requirement. The proposed architecture "Enhanced Cloud Protection System (ECPS)" has two major components Policy Manager (PM) and Security Auditor (SA). PM Components which embeds the access control policy and enhanced message protection policy algorithm namely merkle hash algorithm.