I would like to know if a feature exists on YAF, where a word/post is automatically flagged and removed from a discussion when that word has been flagged as a banned word.

This is similar to the 'anti-spam' flagging that currently exists.

Thank you!

There you can define a word that should be replaced/removed, and choose an replace word for example "****" or keep it blank.

EDIT: At the moment in YAF 3.1.9 its not possible to add new words, this will be fixed in 3.1.10