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Encrypting the data was not much of a problem. You can write a trigger program that will run when a record is added or changed in the file and have it do the encryption (because you can modify the buffer before it gets written into the file in this trigger). Decryption on the other hand does not work the same. We found that you can create a trigger for the read of the data, but even if the trigger program modifies the data it does not get passed to the program issuing the read! (double yuck!!) Seem the designers in their finite wisdom decided that no would be changing the data coming out of a file in a trigger. We were told by IBM that it works as designed and was not going to be changed (this was about 3 years ago, so I've not revisited this might be they have changed their minds). Any way long story short we were going to have to make modes to 175 vendor program that read this info so we could call a service program to do the decrypt, after each and every read in their software (triple yuck!!!).<<SNIP>>
Luckily the vendor was getting pressure from others and did their own encryption/decryption so we did not have to mess with this and then maintain vendor changes in 175 of there programs that we made mods to!!! Unless IBM has changed the ability of a trigger to update a read buffer before the program gets the data retrofitting this into a existing system requires a lot of for thought and possible some recodeing if you don't have standard I/O routines.
Anyway this is what we ran into back about 3 years ago.
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