The public service broadcaster committed a "major breach" of industry standards by omitting to mention that the presenter of a film about the Gaza situation was the offspring of a Hamas administrator, according to regulatory body Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has determined that the documentary was "significantly deceptive".
The chief executive of the broadcaster had earlier expressed regret, noting there had been "a serious error in relation to factual correctness".
The regulator has directed the BBC to air a prime-time declaration about its decisions.
"Given this constitutes a significant violation of our regulations, we are ordering the broadcaster to transmit a announcement of our findings against it on the BBC's second channel at 9pm, with a schedule to be confirmed," the regulator stated.
'Potential to Undermine Credibility'
The regulator's statement declared: "The inquiry we conducted concluded that the film's omission to reveal that the narrator's male guardian held a role in the Hamas-administered authority was significantly deceptive.
"It meant that the audience did not have critical information which may have been extremely pertinent to their assessment of the narrator and the information he presented.
"Credibility is at the center of the bond between a media organization and its audience, especially for a public service broadcaster such as the public broadcaster.
"This error had the potential to undermine the significantly high levels of confidence that viewers would have placed in a BBC factual programme about the Israel-Gaza war."
The film was pulled from the online platform in the month of February after the boy's personal associations were revealed, and in July an broadcaster's internal assessment found it infringed the organization's content policies on accuracy.
A representative for the broadcaster stated: "The authority's determination is in accordance with the conclusions of the corporation's inquiry, that there was a serious error in the film in relation to the BBC's Editorial Guidelines on accuracy, which corresponds to regulation 2.2 of the regulator's media standards.
"We expressed regret for this and we agree with the authority's determination in complete. We will adhere to the penalty as soon as the date and wording are confirmed."