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Sorry, I did miss the nuance in your question.
We do not store the region either.
discard the IP and the result of the query [(aka region)] regardless of whether the IP is in one of these regions or not.

The government may be okay with SN not storing IP addresses. But they could demand that SN permanently mark an account as sanctioned if it ever signed in from any sanctioned region.
If we were doing that, I would say so. The government hasn't demanded anything to be clear. This is self-inflicted compliance in which we are trying to interpret the law to the best of our ability.