The British broadcaster was found to have committed a "major breach" of industry standards by omitting to mention that the narrator of a film about Gaza was the offspring of a Hamas representative, according to UK media regulator Ofcom.
An investigation by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has concluded that the documentary was "significantly deceptive".
The head of the BBC had earlier expressed regret, noting there had been "a significant failing in relation to factual correctness".
The authority has instructed the corporation to air a evening declaration about its decisions.
"Given this constitutes a significant violation of our code, we are directing the broadcaster to transmit a statement of our determinations against it on BBC2 at 9pm, with a timing to be finalised," the statement read.
'Potential to Erode Credibility'
The regulator's announcement stated: "Our investigation found that the documentary's omission to reveal that the presenter's parent held a post in the Hamas-run administration was substantially inaccurate.
"It meant that the viewers did not have vital facts which may have been extremely pertinent to their judgment of the presenter and the information he provided.
"Credibility is at the heart of the connection between a media organization and its audience, particularly for a state-funded media outlet such as the British Broadcasting Corporation.
"This error had the risk to undermine the very considerable amounts of credibility that the public would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The film was removed from the BBC's streaming service in the month of February after the boy's familial connections were revealed, and in the month of July an internal BBC review determined it infringed the corporation's content policies on truthfulness.
A BBC spokesperson stated: "The regulator's decision is in line with the results of Peter Johnston's review, that there was a major oversight in the programme in relation to the broadcaster's journalistic policies on accuracy, which reflects Rule 2.2 of the authority's broadcasting regulations.
"We have apologised for this and we comply with the authority's determination in complete. We will comply with the sanction as soon as the timing and wording are determined."