In a surprise move, UBS AG (NYSE: UBS) said today that it would end off-shore banking and security services in the U.S.

The decision was disclosed today by Mark Branson, the chief financial officer for UBS Global Wealth Management and Business Banking during testimony before a U.S. Senate hearing on tax havens. According to Bloomberg News, the U.S. Senate Permanent Subcommittee on investigations found that UBS bankers from Switzerland -- who were not licensed in the U.S. -- frequently traveled here to woo wealthy Americans interested in setting up secret Swiss bank accounts or shell companies in tax havens such as the British Virgin Islands.

UBS, Switzerland's largest bank, has estimated 19,000 Swiss accounts for U.S. clients with assets valued at $18 billion, according to the subcommittee's report. Along with LGT Bank of Lichtenstein, UBS allowed U.S. clients who sold their U.S. securities to continue to hold undisclosed accounts and to open accounts in the name of non-US entities that were owned by U.S. clients.

Offshore banking is big business for UBS, so much so that other enterprising offshore banks are bound to take up the slack.

"Offshore banking for U.S. clients brought UBS about $200 million in annual revenue, former UBS banker Bradley Birkenfeld said in a statement when he pleaded guilty last month to helping a billionaire UBS client evade U.S. taxes," Bloomberg News report.

Members of Congress have railed for years about off-shore tax havens but have done little about it. The only reason why any noise is being made at all is that this is an election year. I am skeptical that much will change once a new president is elected.