Design a system to deny services to requests from banned IPs, as per information provided by security.gov.x.

Focus on outlining a scalable and efficient architecture that can handle incoming requests while checking against a list of banned IPs. Start by defining how you would retrieve and update the list of banned IPs from security.gov.x, considering frequency and data format. Discuss the methods for integrating this check into the request processing pipeline, including potential caching strategies to minimize latency. Address how to ensure the system can handle high traffic loads and maintain performance, as well as how to log and monitor denied requests for security auditing purposes. Finally, consider any potential edge cases, such as handling dynamic IPs or false positives.