The British broadcaster was found to have committed a "significant breach" of media regulations by failing to disclose that the presenter of a documentary about Gaza was the child of a Hamas administrator, according to British broadcasting authority Ofcom.
An probe by the media regulator into the documentary titled Gaza: How to Survive a Warzone has concluded that the film was "substantially inaccurate".
The BBC's director general had already issued an apology, saying there had been "a serious error in relation to accuracy".
Ofcom has ordered the BBC to transmit a evening announcement about its conclusions.
"As this represents a significant violation of our rules, we are directing the corporation to broadcast a statement of our conclusions against it on BBC2 at 21:00, with a timing to be determined," the statement read.
'Potential to Damage Confidence'
The regulator's announcement declared: "Our probe determined that the documentary's lack of disclosure that the narrator's father served in a post in the Hamas-run government was substantially inaccurate.
"It meant that the viewers did not have essential details which may have been very significant to their judgment of the presenter and the content he shared.
"Credibility is at the center of the bond between a broadcaster and its public, notably for a national broadcasting corporation such as the public broadcaster.
"This error had the possibility to undermine the very considerable degrees of trust that audiences would have invested in a documentary produced by the BBC about the conflict in Gaza."
The documentary was withdrawn from the BBC's streaming service in last February after the boy's familial connections were revealed, and in July an corporation's own inquiry determined it infringed the corporation's journalistic standards on factual correctness.
A BBC spokesperson said: "The Ofcom ruling is in accordance with the findings of the internal assessment, that there was a serious error in the programme in relation to the BBC's Editorial Guidelines on accuracy, which corresponds to Rule 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we accept the authority's determination in full. We will adhere to the penalty as soon as the date and language are confirmed."
