It should probably be clarified that is what happens then. And/Or maybe/maybe not... a small subsection included in the REG, under Deck Building Rules (or somewhere easy to find), Banned cards and how they are treated for Booster Draft and Sealed Deck.
But, I would venture a guess that a banned card is exactly that... BANNED and is unplayable/unusable in any tournament format.
Godspeed,
Mike