A taskforce of Japan's main ruling Liberal Democratic Party has largely approved a draft interim report on political reform in the wake of a fund scandal involving its factions.

The LDP taskforce for political reform held a meeting for all of the party's lawmakers to discuss the report on Tuesday.

It says the LDP reflects sincerely on the fund scandal, deeply apologizes, and will address related parties' accountability and political responsibilities.

The report calls for mandated external auditing of factions' political fund reports to enhance transparency. It also proposes revising party rules to punish lawmakers whose chief treasurers have been arrested or indicted.

In principle, revenues from fundraising events for Diet members shall be sent by bank transfer and their political fund reports submitted online.

The taskforce says it will have serious discussions with other political parties to realize necessary legislative changes including a revision of the Political Funds Control Act.

The taskforce says factions should be transformed into true policy groups and stop their influence on monetary matters and filling Cabinet and other posts.

Specific measures for factions to achieve these include banning political fundraising parties and provision of funds to lawmakers twice a year to support their political activities.

The taskforce says the LDP will disband or suspend factions if they are found to have violated the Political Funds Control Act after party assessments.

The taskforce approved the draft report in general and asked Prime Minister Kishida Fumio to decide on a future course of action.

The LDP intends to hold a meeting to decide on its interim report as early as Thursday.