With the release of iPhone 5s, Apple has introduced the new feature of Touch ID. This functionality allows for devices to use a fingerprint in replacement of a passcode to unlock a device. The functionality also allows for use of fingerprint instead of the Apple ID password when buying from iTunes app store.
AirWatch has the capability of preventing users from unlocking the device using fingerprint through a restriction profile. This can be created by navigating to Menu > Profiles > Add >Apple iOS > Restrictions tab, and uncheck Allow fingerprint for unlock. Even with this fingerprint functionality, passcode profile policies implemented through AirWatch will still have the same behavior and prompt the user to configure a passcode PIN that meets complexity requirements as specified in the AirWatch profile. However, unless the profile restriction to "Allow fingerprint for unlock" is published, users can still configure the fingerprint in addition to the pin for unlocking the device.
Additionally, there is the option on the device to use fingerprint authentication instead of the Apple ID for buying apps from iTunes store. If you want to restrict this, the existing profile restriction via MDM to "Force iTunes password entry" does appear to prevent users from using fingerprint authentication to download apps and forces them to use the Apple ID.
Note: Checking this restriction will also require the user to enter their Apple ID every time an app is installed, versus caching the credentials for a period of time. This is meant to be the primary function of this restriction. This restriction will also nullify the TouchID "iTunes & App Store" functionality.