A policy panel of the ruling Liberal Democratic Party has approved a proposal to overhaul Japan’s intelligence system that calls for criminal penalties against illicit foreign interference, broader intelligence-gathering powers and an independent foreign intelligence agency.

“With foreign espionage activities intensifying, the need (for a stronger intelligence system) is growing,” Akihisa Shiozaki, an LDP lawmaker and secretary-general of the party’s intelligence panel, told reporters after the meeting on Tuesday.

The proposal is the next stage of reforms launched in May, when parliament enacted legislation to create a National Intelligence Council chaired by the prime minister and upgraded the Cabinet Intelligence and Research Office into a National Intelligence Bureau. Due to launch on July 31 with about 700 personnel, the new bureau will coordinate and analyze information gathered across the government.