Those on the list are individuals and groups identified by the United Nations Security Council (UNSC) as entities associated with Al Qaeda.
Under resolutions adopted by the council, UN member states are required to freeze assets, and impose travel ban and embargo on individuals and entities with links to Al Qaeda.
The decision was taken based on Nepal's commitment to UN principles and its adoption of the Anti-Money Laundering (AML) Act.
Clause 29E(2) of the AML Act stipulates that properties of those who invest in organisations, groups, and people involved in terrorist acts or involved in advancing or manufacturing weapons of mass destruction will be frozen immediately.
"As per out commitment to the UN resolution and recommendation made by the ministry of foreign affairs, we have asked the concerned government agencies to freeze the proprieties or bank account(s) or financial transactions," Shanker Prasad Koirala, a spokesperson of Nepal's home ministry said on Monday.
However, he said the government has no knowledge about the presence and financial transactions of Al Qaeda-related individuals and organisations in the country.
"As a UN member state, it is the responsibility of Nepal to freeze the assets of anyone found to have links to the terrorist group," he said.
The UN had urged its member states several times to freeze without delay, funds and other financial assets or economic resources of designated individuals and entities and prevent the entry into or transit through their territories by designated individuals.
Information posted in Nepal's home ministry website about Dawood Ibrahim states that his title is Sheikh and date of birth Dec 26, 1955.
He holds passports of several nations, according to the information.
It also lists the addresses of his properties in Karachi.