A fake money production line was allegedly uncovered by the police two days ago in a raid on a house in Birkirkara.
The police got wind of a scam in which the tax hologram seals on cigarette packets were attached to false notes to make them more convincing.
They searched the Birkirkara house on Monday and, according to sources, found two printers, hologram seals, a stash of stolen iPhones and iPads and a pistol.
Wayne Falzon, 27, from Birkirkara yesterday appeared before Magistrate Claire Stafrace Zammit and pleaded not guilty to manufacturing false bank notes, being in illegal possession of a gun, breaching the peace and relapsing.
Giving his particulars to the court, Mr Falzon said he worked as a used car salesman and, in pleas for bail, said he earned €700 a month and had never had a passport. He was granted bail against a personal guarantee €15,000 and a deposit of €500.
Lawyers José Herrera and Chris Cardona appeared for Mr Falzon.
Police Inspectors Ian Abdilla and Jason Sultana prosecuted.