The public service broadcaster committed a "major breach" of media regulations by failing to disclose that the presenter of a documentary about the Gaza situation was the offspring of a Hamas administrator, according to regulatory body Ofcom.
An investigation by Ofcom into the programme Gaza: How to Survive a Warzone has determined that the programme was "substantially inaccurate".
The chief executive of the broadcaster had previously apologised, saying there had been "a major oversight in relation to factual correctness".
The regulator has directed the BBC to air a evening declaration about its conclusions.
"Since this amounts to a major infringement of our regulations, we are directing the BBC to air a statement of our conclusions against it on BBC Two at nine o'clock in the evening, with a schedule to be determined," it said.
'Potential to Undermine Credibility'
The regulator's announcement stated: "The inquiry we conducted concluded that the film's failure to disclose that the presenter's parent served in a role in the Hamas-controlled administration was materially misleading.
"This implied that the audience did not have critical information which may have been highly relevant to their assessment of the narrator and the content he provided.
"Confidence is at the core of the connection between a television network and its viewers, notably for a state-funded media outlet such as the public broadcaster.
"This oversight had the risk to undermine the exceptionally strong amounts of trust that the public would have put in a BBC factual programme about the Israel-Gaza war."
The film was pulled from iPlayer in the month of February after the presenter's familial connections emerged, and in this past July an internal BBC review found it infringed the organization's journalistic standards on truthfulness.
A BBC spokesperson stated: "The authority's determination is in accordance with the findings of Peter Johnston's review, that there was a serious error in the film in relation to the broadcaster's journalistic policies on accuracy, which corresponds to Rule 2.2 of the authority's broadcasting regulations.
"We expressed regret for this and we accept Ofcom's decision in its entirety. We will comply with the penalty as soon as the date and wording are determined."