This depends a lot on context. For example, if you operate as a lender in the US finance industry, you're legally obligated to do things like: 1. Do KYC (Know

This depends a lot on context. For example, if you operate as a lender in the US finance industry, you're legally obligated to do things like: 1. Do KYC (Know Your Customer) checks to verify somebody's identity 2. Cross references customers to blacklists provided by the federal government (anti-money laundering laws, political sanctions, known fraudsters) 3. Maintain records of who you lent money to, when, for how much, and what the declared use of funds was Etc, etc. There are a lot of reasons in a lot of industries where you're required to keep records of things.