Drew Furgiuele looks at how replication interacts with Transparent Data Encryption:
But what happens if we set up a transactional replication publication on this database and do a snapshot? Remember that when you create a publication, your distributor and subscriber(s) need to know which network share (or FTP server) to drop all the data and schema definitions to so they can be read in by the distribution agent and recreated. In my example, I’m dropping them to a network share. Once the snapshot completes, let’s go check out our subscriber database…
Uh oh. The same query returned zero results at the subscriber. Which means no encryption! Replication won’t replicate encryption, at all. So if you have a requirement to encrypt your data at the source, you’ll need to do it on your subscribers too.
Drew points out a couple important gotchas which might lead to you exposing information you didn’t intend to make available.