The inspectorate said there is no bespoke legislation setting a uniform approach to police facial recognition, existing laws have not kept pace with the technology, and rules differ between forces.
The report said forces should take responsibility for their own procedures, noting that some had no formal process for RFR enquiries.
Forces with centralized facial recognition teams generally had better governance and more consistent processes.
Officials are concerned that long-term misuse of RFR and other facial recognition could erode public trust, which the inspectorate said remains generally high.
Kathryn Stone, His Majesty's Inspector at HMICFRS, said facial recognition has transformed policing by allowing officers to compare images in seconds and solve crimes more quickly.