The British broadcaster was found to have committed a "significant breach" of media regulations by not revealing that the presenter of a film about Gaza was the son of a Hamas administrator, as ruled by British broadcasting authority Ofcom.
An probe by Ofcom into the documentary titled Gaza: How to Survive a Warzone has determined that the film was "materially misleading".
The BBC's director general had already issued an apology, stating there had been "a major oversight in relation to factual correctness".
The regulator has directed the corporation to air a peak-time declaration about its conclusions.
"Since this amounts to a major infringement of our rules, we are directing the corporation to broadcast a statement of our findings against it on the BBC's second channel at 9pm, with a date to be confirmed," the regulator stated.
'Potential to Damage Credibility'
The watchdog's announcement declared: "Our probe determined that the documentary's failure to disclose that the presenter's parent occupied a post in the Hamas-administered government was materially misleading.
"It meant that the viewers did not have vital facts which may have been extremely pertinent to their assessment of the presenter and the details he provided.
"Trust is at the center of the relationship between a media organization and its public, especially for a national broadcasting corporation such as the British Broadcasting Corporation.
"This failing had the possibility to erode the significantly high degrees of confidence that the public would have put in a documentary produced by the BBC about the Israel-Gaza war."
The film was pulled from the online platform in February after the narrator's family links were revealed, and in this past July an broadcaster's internal assessment found it breached the corporation's editorial guidelines on accuracy.
A BBC spokesperson said: "The authority's determination is in agreement with the conclusions of Peter Johnston's review, that there was a major oversight in the documentary in relation to the broadcaster's journalistic policies on accuracy, which aligns with regulation 2.2 of the regulator's media standards.
"We issued an apology for this and we accept the regulator's ruling in full. We will adhere to the penalty as soon as the schedule and wording are determined."