All the settings related to the Group moderation is accessible from Dashboard->Moderation->Settings->Group panel.

General Settings:-

This section allows you to customize how the reporting behaves. You can enable hiding for the reporter. You can also set a threshold when the group becomes hidden for all.

Notification Settings:-

There are 5 types of notifications for BuddyPress group moderation. You can enable/disable and customize them as you please.

• Admin notification on new group being reported
• Admin notification on  new group being hidden
• Group admin(s) notification on their group being hidden
• Group admin(s) on their group being restored
• Group admin(s) notification on their group being deleted

You can enable or disable any of these as you need.

Screenshots:-

Demo for Group Moderation Setting panel for BuddyPress Moderation Tools