No, that is not correct. WasabiWallet has no access to a blacklist created, maintained and / or accepted / approved by a (which one?) government.
This means someone could easily be a criminal in the government's eyes, but not on Wasabi's blacklist. As they are simply not 'synced'. Wasabi has no access to government or law enforcement resources or information.

And what do you think about a scenario where I walked you through how it would look like if they had such access?