A CAF statement said the tactician was guilty of "unsporting conduct" and "bringing the game into disrepute" during the decider in Rabat on January 18th, which Senegal won 1-0 after extra time.
Senegalese forwards Iliman Ndiaye and Ismaila Sarr, who play in the Premier League, received two-match bans for "unsporting behaviour towards the referee".
The Senegal Football Federation (FSF) was fined a total of $615,000 (£444,500) for various offences during the final.
These included the "unsporting conduct of their players and technical staff in violation of the CAF disciplinary code principles of fair play, loyalty and integrity".
For "unsporting behaviour", Moroccan forward Ismael Saibari was handed a three-match ban and a fine of $100,000, while captain and defender Achraf Hakimi was suspended for two matches.
The Royal Moroccan Football Federation (FRMF) was fined $200,000 (£144,500) for the "inappropriate behaviour of the stadium ball boys".
An additional fine of $100,000 (£72,300) was imposed for the "improper conduct" of players and technical staff who invaded the VAR review area and obstructed the work of the Congolese referee.
There was also a $15,000 (£10,800) fine after Moroccan supporters used lasers to try and distract Senegalese players, bringing the total to $315,000. (£228,000)
The AFCON final took a series of dramatic turns from late in regular time when a Sarr goal was disallowed for a foul on 2025 African player of the year Hakimi.
Furious protests
Morocco were then awarded a penalty when star forward Brahim Diaz was fouled, sparking furious Senegalese protests.
TV coverage of the final showed Thiaw gesturing toward his players. This action was widely interpreted as him telling his team to leave the field.
Most of the team walked off and went to the change room, but star forward Sadio Mane did not follow them and later persuaded his teammates to return to the pitch so that play could resume.
Morocco missed the long-delayed penalty with a weak shot from Diaz saved by Edouard Mendy. The match then went to extra time and Pape Gueye scored to give Senegal a second AFCON title.
While play was halted over the disputed penalty, some supporters wearing Senegalese colours threw projectiles and others temporarily invaded the pitch before police and security staff intervened.
The bans of Thiaw and the four players relate to CAF matches. They will not affect preparations by Senegal and Morocco for the 2026 World Cup in the United States, Canada and Mexico.
Senegal are in Group I with France, Norway and the winners of inter-continental play-offs involving Bolivia, Suriname and Iraq.
Morocco, who in 2022 became the first African or Arab country to reach the semi-finals of a World Cup, will face Brazil, Scotland and Haiti in Group C.
Thiaw will be barred from the dugout for five of the six 2027 AFCON qualifying matches involving Senegal in September, October and November. The players will miss the first two qualifiers.