The British broadcaster engaged in a "serious breach" of media regulations by failing to disclose that the presenter of a programme about the Gaza situation was the offspring of a Hamas representative, as ruled by UK media regulator Ofcom.
An probe by Ofcom into Gaza: How to Survive a Warzone has found that the film was "substantially inaccurate".
The head of the BBC had earlier expressed regret, noting there had been "a significant failing in relation to factual correctness".
The authority has directed the broadcaster to air a peak-time declaration about its findings.
"Given this constitutes a significant violation of our regulations, we are instructing the corporation to air a statement of our conclusions against it on BBC2 at 21:00, with a date to be finalised," it said.
'Risk to Undermine Trust'
The watchdog's report said: "Our investigation concluded that the documentary's omission to reveal that the presenter's father held a post in the Hamas-run administration was substantially inaccurate.
"This implied that the viewers did not have essential details which may have been extremely pertinent to their assessment of the presenter and the content he presented.
"Confidence is at the center of the connection between a media organization and its viewers, particularly for a public service broadcaster such as the public broadcaster.
"This oversight had the potential to undermine the very considerable levels of credibility that the public would have put in a factual film from the broadcaster about the Israel-Gaza war."
The documentary was pulled from the online platform in the month of February after the narrator's personal associations came to light, and in the month of July an corporation's own inquiry concluded it breached the broadcaster's editorial guidelines on accuracy.
A BBC spokesperson stated: "The Ofcom ruling is in line with the findings of the internal assessment, that there was a major oversight in the programme in relation to the BBC's Editorial Guidelines on truthfulness, which aligns with regulation 2.2 of the regulator's media standards.
"We issued an apology for this and we agree with Ofcom's decision in full. We will adhere to the penalty as soon as the date and language are confirmed."
