Exposing the Shadows: John Christmas on Money Laundering, Whistleblowing, and the Casino Industry

_{Whistleblower John Christmas shares his insights into money laundering in the casino industry. (Image: Courtesy of John Christmas)}

Casinos.com interviewed co-author of the book KGB Banker, John Christmas, who is also a former banker. The interview revolves around the themes of corruption in banking, money laundering, and the challenges associated with anti-money laundering (AML) regulations for the land-based and online casinos.   

John openly discusses the challenges associated with AML regulations, including the fact that many banks and financial institutions are more focused on "box-ticking" exercises rather than actually preventing money laundering. 

He believes that this approach is failing to address the root causes of the problem and is instead causing unnecessary burdens on legitimate businesses.

Bank Used Shell Companies to Launder Money

John shares his personal experience as a whistleblower who uncovered a massive money-laundering scheme in Latvia involving a bank called Parex. He describes how the bank used shell companies in numerous European countries to launder money and how he was coached by the bank's staff on how to make false invoices to back up transfers. 

KGB Banker is based on his real-life experience and is co-authored with William Burton McCormick. The authors won two awards for the book in the United States. 

Christmas is not the first author of a crime novel we have interviewed on Casinos.com. Geoff White, the author of ‘Rinsed,’ a book focusing on global money laundering, also features in our website archives.  

Disappointed With Lack of Action Taken

The interview also touches on the involvement of the European Public Prosecutor's Office (EPO) and the European Court of Auditors (ECA) in investigating the Parex scandal. John expresses his disappointment with the slow pace of the investigation and the lack of action taken by European authorities to address the issue. 

It comes at a time when global crime is making the headlines in countries like Thailand, America,  Japan, Ukraine and Ireland, with unscrupulous illegal operators across Europe.  

John's comments on the European Central Bank's actions and the effects of AML on small businesses and individuals are also noteworthy. He believes that the current system is not only ineffective but also unfair, causing unnecessary burdens on legitimate businesses like casinos and individuals. 

We began by asking what inspired him to make the transition from banking to writing a thriller like this, where he explained initially focused on a banking career, and he was happily working as a banker until he stumbled upon some serious malpractices. 

“I was hired by Parex Bank in Latvia, only to later discover that I was being used to propagate false information to help the bank secure funding. 

"The bank was dealing heavily with shell companies and money laundering, particularly linked to Russian interests. This realisation pushed me to become a whistleblower.” 

It comes as no surprise to our regular readers that Russia is once again highlighted as having fingers in the illegal operator market and money laundering, as has been reported on this website on a number of occasions.  

Whistleblower Explains the Scale of Corruption  

The new book touches on his experience as a whistleblower. He has witnessed what he says was a ‘lot’ of corruption, which he wanted to expose. 

He went on to explain that the false financial statements and the facilitation of money laundering were of particular interest for him to expose. 

"The bank had set up thousands of shell companies that allowed clients, especially from Russia, to open accounts without legitimate business backing. This made me realise that I needed to act.” 

Are Casinos a Target for Money Launderers?

John’s revelations are shocking, especially the scale of corruption he claims to have witnessed and how the shell companies operated. We asked him if he believed any of these businesses might potentially be linked to gambling or casinos or were involved in laundering money. 

The answer? An unequivocal ‘Yes.’ 

Explaining his haste to confirm what casinos may need to take note of, John said, “Casinos are often a tool for money laundering due to their ability to provide seemingly legitimate financial transactions. 

While Parex Bank itself wasn't directly linked to a casino, there were certainly indirect connections. Bad actors exploit these types of businesses, and meanwhile, the actual anti-money laundering systems seem ineffective and performative.” 

Tick Box Exercises 

The author of KGB Banker mentioned a significant problem with the perception of regulators in Europe. John painted an unsettling picture of how people get away with the crimes, “Many regulatory frameworks are, unfortunately, superficial—more about ticking boxes than addressing real problems. 

"For example, the systems in place often target smaller transactions while larger, systematic laundering goes unpunished. 

"Whistleblowers like me actually become targeted rather than protected. It’s a disturbing misdirection.” 

A Man Looking Over His Shoulder  

John has faced threats to the point where he had to leave Latvia and has relocated a number of times. He is still a man looking over his shoulder. 

Naturally, he would not reveal his current location nor details of his family life, “I’ve faced threats, and being in exile from my homeland has been quite difficult. But I believe it's essential to continue advocating for transparency. 

"My goal is even to get the book made into a movie to shine light on these issues further.” 

While the book is fictional, Christmas freely admits that his real-life experiences have painted the pages. This advocacy has come with both challenges and rewards. 

Protecting victims of corruption is paramount, John claims.  “While the novel incorporates elements of my experience, we made intentional choices to protect identities. 

"We fictionalised characters and circumstances to create an engaging thriller while keeping core issues at the forefront. The goal is to prevent future victims of corruption.” 

Authors Win Awards for Book 

KGB Banker was co-authored with William (Bill) Burton McCormick. 

As co-author, John was generous with his praise for ‘Bill.’ He said, “Bill brought his expertise in suspense and thriller writing, which allowed us to craft a compelling narrative around my experiences. 

"Our collaboration included outlining the story together and determining how to best weave in real-life elements without compromising either our safety or the story's integrity.” 

How To Be A Whistleblower... From A Whistleblower

As someone who has been deeply involved in this world of corruption, we asked John what advice he would give to others considering whistleblowing in their own industries. 

As John sat listening intently to the questions from Casinos.com in front of a bare white wall and a poster of his book, so as not to give away any identifiable details, he gave great thought to all of our questions.

He offered some great advice that some might take note of. “If someone identifies corruption, my first suggestion would be to document everything thoroughly and try to whistleblow anonymously. Prepare tenfold documentation more than you think is necessary, as law enforcement can often downplay the gravity of the situation. Protect yourself while trying to make a difference.”