Recent Westpac Bank scandals have caused Wingecarribee councillors to take a stand.
On November 27 Wingecarribee Shire councillors voted to transfer funds from Westpac to another institution.
Westpac Bank has been accused of breaching money laundering and anti-terrorism laws 23 million times by financial intelligence agency AUSTRAC.
The council currently has $12 million invested in a term deposit with Westpac.
Councillor Gary Turland put forward the motion that upon maturity council staff consider transferring the investment to another bank.
Cr Turland said the council needed to send a message.
"At the end of the day what's happening with Westpac and the Royal Commission - it's arrogance of the big four banks," he said.
"It is unacceptable, we represent the community. "
Councillor Larry Whipper said the issue was about morality and what we held true as a society.
"For the Westpac CEO and the board to be asleep at the wheel like that, it's culpable," he said.
"People make the banks and to be treated with such contempt and to turn a blind eye to criminal activity is wrong.
"They have to learn some things are just not acceptable."
While the majority of councillors were in support of the motion, councillor Ian Scandrett was not.
Cr Scandrett voted against the transfer of funds.
He said this was not a matter for this level of council.
Mayor Gair was in agreement with the boycott. He said they were sending a message as a little council.
"We don't want to invest with people who are involved with criminal activity."
The mayor said if all councils across Australia took action the financial impact of the decision would grow.