The British broadcaster engaged in a "major breach" of industry standards by not revealing that the presenter of a documentary about Gaza was the child of a Hamas representative, according to British broadcasting authority Ofcom.
An probe by the media regulator into Gaza: How to Survive a Warzone has found that the programme was "substantially inaccurate".
The head of the BBC had earlier expressed regret, stating there had been "a serious error in relation to accuracy".
The regulator has directed the broadcaster to broadcast a evening statement about its conclusions.
"Given this constitutes a major infringement of our code, we are ordering the BBC to broadcast a announcement of our determinations against it on BBC2 at 9pm, with a date to be confirmed," the statement read.
'Risk to Damage Trust'
The watchdog's report declared: "Our investigation concluded that the film's omission to reveal that the narrator's male guardian served in a role in the Hamas-run authority was significantly deceptive.
"Consequently that the public did not have essential details which may have been very significant to their assessment of the voice and the information he provided.
"Credibility is at the heart of the bond between a broadcaster and its public, particularly for a national broadcasting corporation such as the British Broadcasting Corporation.
"This error had the potential to erode the significantly high levels of credibility that the public would have invested in a BBC factual programme about the Israel-Gaza war."
The film was withdrawn from the BBC's streaming service in the month of February after the narrator's familial connections came to light, and in July an corporation's own inquiry found it breached the corporation's content policies on factual correctness.
A representative for the broadcaster stated: "The Ofcom ruling is in agreement with the findings of the internal assessment, that there was a serious error in the film in relation to the BBC's Editorial Guidelines on accuracy, which reflects clause 2.2 of Ofcom's Broadcasting Code.
"We have apologised for this and we accept the regulator's ruling in its entirety. We will comply with the sanction as soon as the timing and wording are finalised."