Pakistan Punjab's provincial government took action on the directives of the federal home ministry against Saeed's charities, Jamaatud Dawa (JuD) and Falah-e-Insaniat Foundation (FIF), which have offices across Pakistan, especially in Punjab.
Pakistan government wants to get the nomination withdrawn and freezing of assets of the JuD and the FIF are part of the efforts to make the case of Pakistan strong, the official said.
The operations of Saeed's huge network of schools, seminaries, hospitals, publications and vehicles in Pakistan were a matter of serious concern for the US.
Pakistan's action comes days before a meeting of the Financial Action Task Force, a global money-laundering watchdog, that will consider a US -sponsored motion to place Pakistan on a list of countries failing to prevent terrorism financing.More news: Our first look at Nokia's Android One, Android Go smartphones
The U.S. has labeled JuD and FIF "terrorist fronts" for Lashkar-e-Taiba ("Army of the Pure" or LeT), a group Saeed founded in 1987 that the U.
He denies any involvement in the Mumbai attacks or connection to LeT, which has been blamed for a series of deadly attacks against Indian security forces and civilians, mostly in the disputed territory of Kashmir.
Saeed denies involvement in the Mumbai attacks and claims his charities are only under a United Nations watch list. He vowed to fight the government in court and insisted Saeed had been kept under house arrest without any justification in the past.
"India never bothered to implement United Nations resolutions on Kashmir but our rulers have got passed the president ordinance to take action against patriotic organisations like JuD and FIF", he said.More news: Mendis replaces Perera in Sri Lanka squad
Rawalpindi commissioner Nadeem Aslam told Reuters that officials had "taken over all the JuD and FIF assets" and that the "takeover was complete".
A spokesmen for JuD declined to make an immediate comment but said a statement would be issued.
Pakistani authorities have began taking control of offices and financial assets of two charities linked to Hafiz Saeed, who has already been designated a terrorist by the USA, an official said.
Saeed, founder of Lashkar-e-Taiba (LeT), has been designated a "terrorist" by the United Nations and had a $10m bounty placed on him by the USA in 2012. "Pakistan's credit rating may be downgraded if FATF downgraded its ranking for Islamabad", said the official. Pakistan was last placed on FATF's grey list in February 2012 and stayed on it for three year.More news: Blue Apron puts EBITDA breakeven on table for late 2018