The public service broadcaster was found to have committed a "serious breach" of industry standards by not revealing that the narrator of a documentary about Gaza was the son of a Hamas administrator, as ruled by British broadcasting authority Ofcom.
An inquiry by the media regulator into the documentary titled Gaza: How to Survive a Warzone has concluded that the documentary was "substantially inaccurate".
The chief executive of the broadcaster had previously apologised, saying there had been "a serious error in relation to factual correctness".
Ofcom has ordered the broadcaster to transmit a peak-time announcement about its decisions.
"Since this amounts to a major infringement of our code, we are directing the BBC to air a announcement of our determinations against it on BBC2 at 9pm, with a date to be finalised," the statement read.
'Potential to Undermine Trust'
The regulator's announcement declared: "The inquiry we conducted determined that the film's failure to disclose that the narrator's parent occupied a post in the Hamas-administered authority was materially misleading.
"This implied that the audience did not have essential details which may have been extremely pertinent to their evaluation of the presenter and the details he shared.
"Confidence is at the heart of the relationship between a television network and its audience, especially for a national broadcasting corporation such as the BBC.
"This oversight had the possibility to erode the exceptionally strong degrees of credibility that audiences would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The programme was withdrawn from the BBC's streaming service in the month of February after the boy's personal associations emerged, and in this past July an corporation's own inquiry found it infringed the organization's journalistic standards on accuracy.
A BBC spokesperson stated: "The authority's determination is in accordance with the conclusions of the corporation's inquiry, that there was a serious error in the documentary in relation to the BBC's Editorial Guidelines on truthfulness, which corresponds to clause 2.2 of Ofcom's Broadcasting Code.
"We expressed regret for this and we comply with the regulator's ruling in complete. We will adhere to the penalty as soon as the date and wording are determined."