The corporate watchdog will appeal a $10,000 fine recently handed to the former chief financial officer of AWB, seeking a harsher penalty.

Paul Ingleby was fined and banned from managing a corporation until the end of 2012 in the Supreme Court of Victoria on August 10.

He admitted to one breach of the Corporations Act, by failing to realise payments disguised as transport fees were ultimately going to Saddam Hussein’s government.

The Australian Securities and Investments Commission (ASIC) had sought a $40,000 penalty and a 15-month ban from managing a corporation.

A notice of appeal against the penalty has been filed in the Court of Appeal of the Supreme Court of Victoria, ASIC said on Monday.

A date for an appeal hearing is yet to be set.