Julius Baer, the Swiss banking and investment group, has decided to exit from its offshore business in the US, WealthBriefing can confirm. The bank's move follows a similar exit from offshore banking by UBS earlier this year.

A Julius Baer spokesperson told this publication that the process has started already. However, there is no set time frame stating when this process will be finished.

"We have already initiated a phased exit from this business and continue to monitor the situation closely, including the possibility of a SEC-licensed entity," the firm said.

Julius Baer’s exit will mean that US citizens can only engage with the Swiss private bank though US subsidiaries, licensed by the US Securities and Exchange Commission and fully transparent to the tax authorities.

At the end of August this year, Wegelin, another Swiss private bank, ceased its operations in the US in response to tougher measures against tax evaders.

UBS stopped providing offshore banking in the US following a deal in February which saw the Swiss banking giant pay a $780 million fine to settle criminal charges that it helped US clients avoid paying domestic taxes.

US lawmakers have been targeting offshore bank accounts of its citizens. Last week, the US Internal Revenue Service said around 7,500 citizens had come forward with details of previously undeclared bank accounts as part of a voluntary disclosure programme which ended on 15 October.