But the International Cricket Council (ICC) said Ali would face no disciplinary action on this occasion after being warned about his future conduct by match referee David Boon, the former Australia batsman.
Worcestershire all-rounder Ali wore wristbands during the third Test match against India on Monday that read "Save Gaza" and "Free Palestine", while batting during England's first innings at the Rose Bowl in Southampton.
The conflict in Gaza is entering its fourth week, with the Palestinian death toll passing the 1,100 mark and 56 people losing their lives on the Israeli side.
"Moeen Ali was told by the match referee that whilst he is free to express his views on such causes away from the cricket field, he is not permitted to wear the wristbands on the field of play and warned not to wear the bands again during an international match."
Ali's wristbands were only on public display for 42 minutes on Monday while he made 12 runs off 28 balls before he was caught off India seamer Bhuvneshwar Kumar.
On Monday, the England and Wales Cricket Board insisted they had no issues with Ali's conduct.
"As far as we are concerned, he has not committed any offence," an ECB spokesman said, adding it was up to the ICC to decide what action, if any, Ali should face.
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