32-year-old Hassan Zarrad was carrying 149 pieces of counterfeit Indian Rupees in denominations of 1,000, an offence which carries a maximum 10 years' jail on conviction.
He was also charged by the Ipoh Magistrate's court under the Immigration Act for not having valid travel documents in the country.
Speaking through an interpreter, Hassan pleaded not guilty to the charges.
He was not offered any bail, as he is a foreigner.
