Patently wrong. Here's how the API works:
The Update API lets your client applications download hashed versions of the Safe Browsing lists for storage in a local database. URLs can then be checked locally. Only if a match is found in the local database does the client need to send a request to the Safe Browsing servers to verify whether the URL is included on the Safe Browsing lists.
From: https://developers.google.com/safe-browsing/v4/update-api
Source: Safe Browsing engineer on Chrome.