The issue of simulation has been a hot topic in the Premier League after several instances involving Chelsea players in recent weeks.
Chelsea manager Jose Mourinho was particularly irked after Sunday's 1-1 draw at Southampton, when Cesc Fabregas was cautioned despite appearing to be fouled by Matt Targett in the penalty area.
Previously, Hull City boss Steve Bruce accused Gary Cahill of diving in their 2-0 defeat at Stamford Bridge on December 13 - a match that saw Chelsea duo Diego Costa and Willian go into the book for simulation.
Wenger believes that there is a problem with diving and stated that suspensions must be handed out as merely naming offenders is not enough.
"I am against diving, but the only way players will stop doing it is if they can get punished," he said.
"We should punish [players] after the game.
"The problem will be to decide when it was obvious diving or not. That is a big issue and sometimes it is not obvious."
