The Tigers midfielder raised eyebrows during the MCG clash when he kicked a goal and celebrated by crossing his wrists, as if to signal handcuffs.
On Wednesday night, AFL football manager Mark Evans announced the League had handed Martin a $2000 fine, suspended for two years, meaning the 22-year-old will not need to dip into his pocket unless he re-offends.
It is understood the Tigers have counselled Martin over the gesture but the club is not expected to hand down a separate sanction.
"We've had discussions with Richmond over the last couple of days, and Dustin Martin has accepted that he thought the gesture, in hindsight, was inappropriate," Evans told radio station 3AW.
"We haven't fined or sanctioned in the past for this, but it's got to the point where we're really saying to all players that we don't want these sorts of gestures.
"There will be a portion of our audience or crowd who are upset by it, and we just think it's best left somewhere else."
On Tuesday night, Tigers president Gary March said he was unimpressed with the hand signal.
"It was disappointing, even if it's not in the context that we think it is," March said.
"I don't think players need to be doing that in a game."
Evans said it had since been confirmed that Martin was acknowledging someone in prison.