The Group of 20's (G20) crackdown on tax havens has resulted in a drop-off in investment in countries such as Bermuda and the Cayman Islands.

That is according to a report in the Toronto Globe and Mail, which revealed that Compton Bourne, president of the Caribbean Development Bank, told delegates at the Conference of Montreal this week that while the Caribbean had its friends in the G20, it was difficult to see who would take the region's side over tax havens.

Mr. Bourne, who was speaking during a panel discussion on Wednesday, said it was a debate which was as much a philosophical one about tax competition as catching high-rolling tax cheats and cutting off funds to terrorists.

"The region is losing legitimate business," Mr. Bourne said later in an interview with the paper. Financial services companies "are moving because they perceive hostility toward the region", he said.