The public service broadcaster committed a "significant breach" of industry standards by failing to disclose that the narrator of a documentary about the Gaza situation was the child of a Hamas official, according to UK media regulator Ofcom.
An probe by Ofcom into the programme Gaza: How to Survive a Warzone has determined that the documentary was "substantially inaccurate".
The BBC's director general had earlier expressed regret, noting there had been "a major oversight in relation to factual correctness".
The regulator has instructed the corporation to air a peak-time declaration about its decisions.
"As this represents a major infringement of our rules, we are ordering the corporation to transmit a announcement of our findings against it on the BBC's second channel at nine o'clock in the evening, with a schedule to be finalised," the regulator stated.
'Potential to Damage Trust'
The authority's announcement stated: "Our investigation concluded that the programme's lack of disclosure that the voice's father occupied a post in the Hamas-run authority was materially misleading.
"It meant that the public did not have essential details which may have been highly relevant to their judgment of the narrator and the content he provided.
"Credibility is at the center of the relationship between a broadcaster and its audience, particularly for a state-funded media outlet such as the British Broadcasting Corporation.
"This failing had the risk to damage the exceptionally strong degrees of credibility that the public would have placed in a factual film from the broadcaster about the Israel-Gaza war."
The programme was removed from iPlayer in the month of February after the presenter's familial connections were revealed, and in July an corporation's own inquiry determined it violated the organization's content policies on factual correctness.
A corporation official commented: "The Ofcom ruling is in line with the findings of the corporation's inquiry, that there was a major oversight in the film in relation to the corporation's content standards on accuracy, which aligns with clause 2.2 of the authority's broadcasting regulations.
"We have apologised for this and we agree with the regulator's ruling in its entirety. We will comply with the sanction as soon as the schedule and wording are finalised."