The 44-year-old ordered his players off the pitch after a late penalty was awarded to opponents Morocco - triggering a 17-minute delay before Senegal returned, saw the spot-kick saved, and eventually won the final in extra time.
The Confederation of African Football (CAF) confirmed Thiaw’s suspension applies to its competitions only and will not affect Senegal’s FIFA World Cup fixtures, while the governing body also issued a $100,000 fine for "unsporting conduct" and bringing the game into disrepute.
Senegal went 3-2 up in normal time before Morocco were awarded a late penalty, prompting Thiaw to instruct his players to leave the field.
CAF also handed two-match bans to forwards Iliman Ndiaye and Ismaila Sarr for unsporting behaviour towards the referee, while the Senegal Football Federation was fined a total of $615,000.
Morocco were also punished following the final, as forward Ismael Saibari received a three-match ban and a $100,000 fine, while Paris Saint-Germain right-back Achraf Hakimi was given a two-match suspension, with one game suspended.
An appeal lodged by the Moroccan Football Federation to overturn the result - based on Senegal’s decision to leave the pitch - was dismissed by CAF, confirming the final score and Senegal’s title win.
Following the delay, goalkeeper Edouard Mendy saved Brahim Diaz’s penalty attempt before midfielder Pape Gueye scored the decisive goal in extra time - securing Senegal’s second AFCON title in three tournaments.
Senegal captain Sadio Mane addressed the controversy after the match, urging calm and perspective following the dramatic finale.
Speaking after the final, he said: “Football is something special, the world was watching, the world loves football and I think football is a pleasure so we have to give a good image for football.
“I think it would be crazy to not play this game because, what, the referee gave a penalty and we go out of the game? I think that would be the worst thing, especially in African football. I’d rather lose than this kind of thing happen to our football.”
Despite the sanctions, Senegal will look to carry momentum from their AFCON success into the World Cup, where they face a challenging group alongside France and Norway.