I mean I guess it would be grandfathering if that's the case. If it really is the decision of the head brains of this server so be it.
How about remove the red tape? Mods should have the full power to ban any whitelisted people and then those said whitelisted people can appeal to the whitelist council or bancrose himself. This will actually make punishments swift rather then waiting seven years for the council to log on and give their thoughts.