Punishment after removing an extremely small amount of money (5)
I believe the answer is:
pence
'extremely small amount of money' is the definition.
'punishment after removing an' is the wordplay.
'punishment' becomes 'penance' (penance is a kind of punishment).
'after removing' suggests deleting specific letters.
'penance' with 'an' taken away is 'PENCE'.
(Other definitions for pence that I've seen before include "President's vice" , "Fractions of a pound" , "some European capital" , "Small sum of money" , "little money" .)