The public service broadcaster was found to have committed a "serious breach" of broadcasting rules by omitting to mention that the narrator of a film about the Gaza situation was the child of a Hamas official, as ruled by UK media regulator Ofcom.
An investigation by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has concluded that the film was "significantly deceptive".
The chief executive of the broadcaster had previously apologised, stating there had been "a serious error in relation to accuracy".
The authority has ordered the corporation to broadcast a evening announcement about its decisions.
"As this represents a significant violation of our regulations, we are instructing the BBC to air a message of our determinations against it on BBC2 at nine o'clock in the evening, with a date to be confirmed," it said.
The regulator's statement declared: "Our probe determined that the documentary's omission to reveal that the voice's father occupied a position in the Hamas-run government was materially misleading.
"It meant that the public did not have critical information which may have been highly relevant to their evaluation of the presenter and the information he presented.
"Confidence is at the core of the bond between a broadcaster and its public, particularly for a public service broadcaster such as the British Broadcasting Corporation.
"This error had the possibility to damage the very considerable amounts of credibility that audiences would have put in a factual film from the broadcaster about the Gaza conflict."
The documentary was pulled from iPlayer in the month of February after the boy's personal associations came to light, and in July an internal BBC review concluded it breached the corporation's journalistic standards on factual correctness.
A BBC spokesperson said: "The regulator's decision is in agreement with the conclusions of the internal assessment, that there was a serious error in the documentary in relation to the corporation's content standards on truthfulness, which reflects Rule 2.2 of the authority's broadcasting regulations.
"We have apologised for this and we accept the authority's determination in its entirety. We will adhere to the penalty as soon as the schedule and wording are finalised."
Rashid Al-Mansoori is a tech journalist with over a decade of experience covering innovations and digital transformations in the Middle East.
