The public service broadcaster was found to have committed a "serious breach" of media regulations by failing to disclose that the narrator of a programme about the Gaza conflict was the offspring of a Hamas representative, according to UK media regulator Ofcom.
An inquiry by Ofcom into Gaza: How to Survive a Warzone has determined that the documentary was "substantially inaccurate".
The chief executive of the broadcaster had previously apologised, stating there had been "a major oversight in relation to accuracy".
The regulator has ordered the BBC to broadcast a evening declaration about its findings.
"Given this constitutes a major infringement of our regulations, we are directing the BBC to air a statement of our findings against it on BBC2 at 9pm, with a schedule to be finalised," the regulator stated.
'Potential to Damage Confidence'
The authority's statement said: "The inquiry we conducted found that the programme's failure to disclose that the narrator's parent served in a position in the Hamas-administered authority was significantly deceptive.
"Consequently that the audience did not have vital facts which may have been extremely pertinent to their evaluation of the narrator and the content he presented.
"Trust is at the core of the connection between a television network and its audience, notably for a state-funded media outlet such as the BBC.
"This oversight had the potential to undermine the very considerable degrees of confidence that audiences would have placed in a BBC factual programme about the Gaza conflict."
The documentary was pulled from the online platform in last February after the boy's family links emerged, and in the month of July an broadcaster's internal assessment determined it violated the broadcaster's journalistic standards on truthfulness.
A corporation official commented: "The Ofcom ruling is in accordance with the findings of Peter Johnston's review, that there was a serious error in the film in relation to the BBC's Editorial Guidelines on truthfulness, which reflects Rule 2.2 of Ofcom's Broadcasting Code.
"We expressed regret for this and we agree with the authority's determination in complete. We will comply with the penalty as soon as the schedule and language are determined."