The Security Intelligence Service has confirmed its investigation into Kim Dotcom found he posed no security risk to New Zealand.
In response to an Official Information Act request, the SIS says it was asked to investigate the internet entrepreneur by Immigration New Zealand in 2010.
Mr Dotcom, a German national with New Zealand residency, is fighting extradition to the United States to face charges of internet piracy and fraud.
In September this year, the Government Communications Security Bureau admitted that it illegally monitored him after relying on incorrect police information about his residency.
The SIS says it was not involved in that surveillance. However, it did pass on a request in October 2010 from the FBI to New Zealand police about conducting a joint investigation into Mr Dotcom's activities.
About two weeks later, the SIS told Immigration it had no security concerns about Mr Dotcom.
Prime Minister John Key on Monday played down confirmation that the SIS had contact with the FBI over the planned investigation.
Mr Key said whenever anyone applies for a resident visa, the SIS makes inquiries about their status.
He says the SIS was following standard procedure and when the FBI raised its interest in Kim Dotcom, the SIS simply passed that on to police.
Meanwhile, police say an initial report into the GCSB's surveillance of Mr Dotcom will be ready by 15 November after the Green Party lodged a complaint.