Sinse it is leaking, and it looks somewhat rusty, my choice would be to remove it. Leaving something like that runs a risk of the engine suddenly loosing enough oil to cause damage if the driver doesn't catch it in time.
You say it is plumbed from the sender unit, (which is pressure), and back to the oil pan, (which just returns oil to the pan). That means this is a "bypass system" meaning it meters a small amount of oil from the pressurized galley, through the filter, then returns to the oil pan.
If you do remove it, plug both places the hoses are connected. Do not loop the hose back to the oil pan.
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