Banks appeared at the Auckland District Court today where his lawyer David Jones QC formally entered the plea of not guilty on his client's behalf.
Banks has been called to court to answer allegations that he received money from Dotcom and SkyCity during his run for the Auckland mayoralty in 2010 but declared them as anonymous.
Retired Wellington accountant Graham McCready has filed court documents to bring a private prosecution against Banks after police determined they could not lay a charge because it was outside the six-month time limit for summary charges to be laid.
In court, Mr Jones called the prosecution "fundamentally flawed" and said the charge would be defended.
In a decision released last month, Judge Ian Mill said Banks should answer the allegations that relate to two $25,000 donations from Dotcom and his company Megastuff Ltd. A third donation of $15,000 from SkyCity Casino is also included in the allegation.
He said material supplied by Mr McCready showed there were a number of people who could comment on what Banks knew and when.
Mr McCready was found guilty of false tax returns in 2009, and was convicted of blackmail in April.
