But he admitted to attempts to ''thinly disguise'' the payment because he knew it would ''ring alarm bells'' with his employer and breach commission rules.
Mr Standen, who is on trial on three charges including conspiring with the informer James Kinch and the businessman Bill Jalalaty to import pseudoephedrine, was giving evidence in his defence.
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He also told the court he did not believe Mr Jalalaty when he told him he had received $1 million in cash in a sportsbag from a friend of Mr Kinch's.
He said he believed Mr Kinch had transferred the money into Mr Jalalaty's account to invest.
For most of yesterday Mr Standen interpreted emails between himself and Mr Kinch, outlining the assistance Mr Kinch had given to Crime Commission investigations.
Among other people, Mr Standen said Mr Kinch was providing information about a British criminal who was planning to come to Sydney, and he and Mr Kinch were plotting how to obtain the man's secret phone number.
He said he asked Mr Jalalaty to inquire about buying acetone, so the man could be asked to contact him, and his number could be obtained.
The plan was a ruse but before he knew it Mr Jalalaty had bought $30,000 worth of the substance, which the court heard could be used to make illegal drugs or cleaning products.
Mr Standen said yesterday he discussed personal matters with Mr Kinch, including his plans to go into business with Mr Jalalaty in late 2005.
In late 2005 Mr Kinch asked Mr Standen for account details because he wanted to pay for his laser eye surgery as a Christmas present. Mr Standen asked the money be sent to Mr Jalalaty's account. Instead of the required, Mr Kinch sent £20,000.
Mr Standen said he did not consider the money might be from illegal sources. ''It would be a little crazy for him to send illegally acquired money to my account … which was the initial plan,'' Mr Standen said.
His barrister, Mark Ierace, SC, asked him if he believed it compromised his professional relationship with Mr Kinch.
''Not in my mind,'' Mr Standen replied.
''In my mind I compartmentalised things and I operated on the basis [that] provided the work compartment remained intact and I did all the things that were required of me in relation to information coming from Mr Kinch … the business compartment operated independent of that.''
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