Cumbria police told the review: "We were really concerned that reports of the same midwives [of whom] we had the cases sitting in front of us were still practising at the hospital".
The inquest also denounced poor record keeping at the Cumbrian hospital - one of five run by the Morecambe Bay NHS Foundation Trust - and said it had mishandled bereaved families.
The review was commissioned by Jeremy Hunt, the Secretary of State for Health and Social Care, after up to 19 babies and mothers died at the hospital between 2004 and 2012 as a result of mistakes by the staff of its maternity unit.
The NMC did not listen to or properly investigate concerns about Midwives at Furness General Hospital..
An inquest published today has found that the Nursing and Midwifery Council (NMC) did not act on information provided to them by Cumbria Police highlighting concerns about midwives at the hospital for nearly two years.
Concerns about the hospital were first raised following the death of nine-day-old Joshua Titcombe in 2008, who was suffering from sepsis.
The NMC has apologised and admitted its approach was "unacceptable". "This was an opportunity missed, given that some of the midwives identified by the police were subsequently involved in adverse events at [Furness general hospital]".
The Professional Standards Authority for Health and Social Care has today published its Lessons Learned Review which heavily criticises how the Nursing and Midwifery Council handled concerns about midwives' fitness to practise at the Furness General Hospital.
The NMC welcomed the publication of the review, with outgoing chief executive Jackie Smith claiming that the NMC's approach was "unacceptable".
The PSA, which supervises medical regulators, found that the NMC was not prompted to do anything by the police reports, despite their seriousness.
Barrow and Furness MP John Woodcock said: "This devastating report shows how local families were systematically obstructed and failed by an organisation whose conduct has brought shame on the proud and vital profession it is supposed to represent".
The review said although the NMC's performance as a regulator is improving, it needs to "urgently review and improve" its engagement with patients and families who register complaints and provide them with "appropriate information".
'We take the findings of this review extremely seriously and we're committed to improving the way we communicate with families, witnesses and all those involved in the fitness to practise process.
She said they had made "significant changes" since 2014 which had "put vulnerable witnesses and families affected by failings in care at the heart of our work".