Bank CEOs, executives and directors could be jailed if found to be recklessly breaching the law under a proposal being touted by a crossbench senator.
Nick Xenophon believes fines are sometimes not enough, citing the 53,000 "egregious" offences being levelled against the Commonwealth Bank.
The South Australian senator the allegations that they failed to comply with anti-money laundering and counter-terrorism financing laws were damning and suggested an "appalling lack of risk management" and almost a "contemptuous disregard for the law".
The federal government's financial intelligence unit, AUSTRAC, has launched civil proceedings against CBA in the Federal Court.
"They made a lot of money out of this and sometimes a fine is not enough," Senator Xenophon told reporters in Canberra on Sunday.
"Sometimes a jail term needs to be on the agenda."
He is working with colleagues on the issue and will consider introducing a private bill to ensure there is a chain of responsibility for big corporations.
The buck stops with the CEO and the board, he said.
"Right now, getting a multi-million dollar fine for the Commonwealth Bank is really a bit like being slapped with a piece of wet lettuce," he said.
"If you're fair dinkum about changing the culture of an organisation, sometimes the spectre of a jail term might sharpen their thinking."
