Created using remix-ide: Realtime Ethereum Contract Compiler and Runtime. Load this file by pasting this gists URL or ID at https://remix.ethereum.org/#version=soljson-v0.8.17+commit.8df45f5f.js&optimize=false&runs=200&gist=

contracts...SanctionedERC20.sol

// SPDX-License-Identifier: GPL-3.0

pragma solidity >=0.7.0 <0.9.0;

import "hardhat/console.sol";

import "https://github.com/OpenZeppelin/openzeppelin-contracts/blob/master/contracts/token/ERC20/ERC20.sol";
import "https://github.com/OpenZeppelin/openzeppelin-contracts/blob/master/contracts/token/ERC20/extensions/ERC20Capped.sol";


//  Check this USDC contract - https://gist.github.com/chappjc/350aafb9031f7a66986967bf8ab67d38
// ERC20 with sanctions. Create an ERC20 token that allows an admin to ban specified addresses from sending and receiving tokens.
// Block transfer, Block Allowance, Block minting

contract SanctionedERC20 is ERC20, ERC20Capped {
    uint private constant CAP_AMOUNT = 100_000_000;
    address public immutable ADMIN;

    mapping(address => bool) public sanctionList;

    constructor(address _adminAddress) ERC20("GOD", "GOD") ERC20Capped(CAP_AMOUNT) {
        ADMIN=_adminAddress;
    }

    modifier onlyADMIN() {
        require (msg.sender == ADMIN, "Only Admin");
        _;
    }

    modifier blacklistCheck(address add){
        require(!sanctionList[add], "Blacklisted address");
        _;

    }

    event BlackListed(address _address);
    event UnBlackListed(address _address);
    // event BlackListTxferAttempted(address from, address to, uint amount);
    
    function _mint(address to, uint256 amount) internal override(ERC20, ERC20Capped){
        super._mint(to, amount);
    }

    // Anyone can mint any number of tokens till cap is reached
    function mint(uint _amount) external returns(bool){
        _mint(msg.sender, _amount);
        return true;
    }

    // Admin can sanction an address
    function addToBlackList(address _sanctionedAddress) external onlyADMIN returns(bool){
        sanctionList[_sanctionedAddress] = true;
        emit BlackListed(_sanctionedAddress);
        return true;
    }

    function removeFromBlackList(address _sanctionedAddress) external onlyADMIN returns(bool){
        sanctionList[_sanctionedAddress] = false;
        emit UnBlackListed(_sanctionedAddress);
        return true;
    }

    function transfer(address to, uint256 amount) public blacklistCheck(to) blacklistCheck(msg.sender) virtual override returns (bool) {
        address owner = _msgSender();
        _transfer(owner, to, amount);
        return true;
    }    

}