The public service broadcaster was found to have committed a "major breach" of broadcasting rules by not revealing that the narrator of a documentary about the Gaza conflict was the offspring of a Hamas representative, as determined by British broadcasting authority Ofcom.
An probe by the media regulator into Gaza: How to Survive a Warzone has determined that the documentary was "materially misleading".
The BBC's director general had already issued an apology, stating there had been "a serious error in relation to accuracy".
Ofcom has ordered the corporation to transmit a prime-time declaration about its findings.
"Given this constitutes a major infringement of our regulations, we are directing the broadcaster to transmit a statement of our conclusions against it on BBC Two at nine o'clock in the evening, with a schedule to be finalised," the statement read.
'Possibility to Damage Credibility'
The watchdog's statement stated: "The inquiry we conducted concluded that the programme's lack of disclosure that the presenter's father occupied a position in the Hamas-administered government was materially misleading.
"Consequently that the viewers did not have critical information which may have been extremely pertinent to their evaluation of the presenter and the information he presented.
"Credibility is at the core of the connection between a television network and its audience, particularly for a public service broadcaster such as the BBC.
"This failing had the potential to damage the significantly high degrees of confidence that audiences would have placed in a BBC factual programme about the Israel-Gaza war."
The film was pulled from the BBC's streaming service in the month of February after the narrator's personal associations came to light, and in the month of July an internal BBC review concluded it infringed the organization's content policies on truthfulness.
A BBC spokesperson said: "The authority's determination is in accordance with the conclusions of the corporation's inquiry, that there was a significant failing in the programme in relation to the broadcaster's journalistic policies on truthfulness, which reflects Rule 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we comply with the regulator's ruling in its entirety. We will comply with the penalty as soon as the date and language are confirmed."
