Automated Bans based on a list of words/phrases isn't the way to go about it.
IQ bring fag grenades
Oh I'm from Pakistan
If you start banning from a list of words, people will (as they've been trying) bait people into saying them- I just got out of a game where I was told to 'spell the N word without the G's and with B's instead'.
The game is 18+ IIRC - add an option for a maturity filter in the options, it could have an 'advanced settings' dropdown menu that decides what words you'd like to censor/what categories of words you don't want to see (Homophobia/Racism/Sexism), if someone types 'Kill yourself, Faggot' in the chat; it'll appear as 'Kill yourself, *****'.
Issuing bans is just going to cull the playerbase- I've never had an issue with toxic players and toxicity in the text chat- as long as the toxicity doesn't actively involve teamkilling or anything that negatively affects the gameplay I couldn't care less
Allow players to mute individual players text chat
Possibly add a Karma/Bad Sport system (might be too easy to exploit though)
Add option for players to see words through a censor filter
NO MORE AUTOMATED BANS