The British broadcaster was found to have committed a "major breach" of industry standards by not revealing that the presenter of a documentary about Gaza was the child of a Hamas official, as determined by regulatory body Ofcom.
An investigation by the media regulator into the documentary titled Gaza: How to Survive a Warzone has found that the documentary was "significantly deceptive".
The chief executive of the broadcaster had previously apologised, noting there had been "a major oversight in relation to accuracy".
The authority has instructed the corporation to broadcast a peak-time statement about its conclusions.
"As this represents a major infringement of our regulations, we are directing the broadcaster to air a message of our findings against it on the BBC's second channel at nine o'clock in the evening, with a date to be confirmed," it said.
'Potential to Undermine Confidence'
The authority's statement said: "Our probe found that the documentary's lack of disclosure that the presenter's father occupied a post in the Hamas-administered authority was significantly deceptive.
"Consequently that the viewers did not have essential details which may have been highly relevant to their evaluation of the presenter and the details he shared.
"Trust is at the heart of the bond between a broadcaster and its audience, especially for a state-funded media outlet such as the BBC.
"This oversight had the possibility to undermine the exceptionally strong amounts of confidence that audiences would have put in a documentary produced by the BBC about the Israel-Gaza war."
The documentary was pulled from the BBC's streaming service in February after the boy's personal associations emerged, and in this past July an internal BBC review found it infringed the corporation's editorial guidelines on truthfulness.
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 major oversight in the film in relation to the broadcaster's journalistic policies on factual correctness, which aligns with Rule 2.2 of Ofcom's Broadcasting Code.
"We expressed regret for this and we agree with Ofcom's decision in full. We will follow the penalty as soon as the date and wording are finalised."
