The 29-year-old was forced to give up of his middleweight world title after banned stimulant oxilofrine was discovered in a VADA sample.
His promoter Frank Warren insisted it came from a 'common decongestant nasal spray', and Saunders has insisted he is a "clean fighter".
But it forced his scheduled world title defence against Demetrius Andrade to be scrapped, and the Saunders was forced to vacate the belt.
Warren released a statement emphasising that under the rules of the UKAD or the WADA the stimulant is permitted for use when “out of competition.”
But the Massachusetts State Athletic Commission denied him a boxing licence which led to him losing the title he has held since December 2015.
Warren has since confirmed he and Saunders have started legal action against the Commission.
His suspension means he cannot challenge for his old belt until next year, but it does not mean he is banned for boxing for other titles.
Speaking at the WBO Boxing Convention, president Francisco Valcarcel confirmed the suspension.
He said: "Billy Joe sent us a public apology. We issued a resolution. He was suspended for six months.
"He has to do community work, work with young people.
"If you are going to be a champ you have to do things from the heart. Three months after his suspension we can consider if he will go into the ratings, if he will be reinstated.
"The information I have so far is that he started well and he is complying with what we asked of him.
"But he must continue. He must see this through. If this is not sustainable he will not be in the ratings.
"We want champions that will be good. That will be role models to future generations. If not we don’t want you.”
Saunders has a perfect 26-0 record but has been hit with controversy in recent months, including taunting a drug addict in a viral video for which was fined £100,000.
This led to him being hit with a £100,000 fine by the British Boxing Board of Control at the end of last month for bringing the sport into disrepute.
After Saunders was pulled from the bout, Andrade fought Walter Kautondokwa for the vacant world title.
The American scored four knockdowns en route to a unanimous decision victory, and so now holds the belt Saunders proudly owned for almost three years.
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