The public service broadcaster engaged in a "serious breach" of broadcasting rules by not revealing that the presenter of a programme about Gaza was the offspring of a Hamas representative, as determined by British broadcasting authority Ofcom.
An probe by Ofcom into the programme Gaza: How to Survive a Warzone has determined that the programme was "significantly deceptive".
The BBC's director general had already issued an apology, stating there had been "a major oversight in relation to truthfulness".
The regulator has ordered the BBC to air a prime-time declaration about its findings.
"As this represents a serious breach of our rules, we are instructing the BBC to broadcast a announcement of our findings against it on BBC2 at nine o'clock in the evening, with a date to be confirmed," the regulator stated.
'Possibility to Erode Confidence'
The authority's report said: "Our investigation found that the film's lack of disclosure that the presenter's parent held a post in the Hamas-administered administration was materially misleading.
"Consequently that the viewers did not have essential details which may have been extremely pertinent to their judgment of the narrator and the content he presented.
"Credibility is at the heart of the relationship between a broadcaster and its audience, notably for a national broadcasting corporation such as the British Broadcasting Corporation.
"This error had the possibility to undermine the significantly high amounts of confidence that audiences would have invested in a documentary produced by the BBC about the Israel-Gaza war."
The documentary was pulled from the online platform in February after the presenter's personal associations emerged, and in the month of July an corporation's own inquiry concluded it violated the broadcaster's content policies on truthfulness.
A BBC spokesperson stated: "The regulator's decision is in agreement with the conclusions of the internal assessment, that there was a major oversight in the film in relation to the corporation's content standards on accuracy, which corresponds to regulation 2.2 of the authority's broadcasting regulations.
"We issued an apology for this and we accept the regulator's ruling in full. We will adhere to the penalty as soon as the schedule and wording are confirmed."
