The public service broadcaster committed a "major breach" of industry standards by failing to disclose that the presenter of a documentary about the Gaza situation was the child of a Hamas representative, according to UK media regulator Ofcom.
An inquiry by Ofcom into Gaza: How to Survive a Warzone has concluded that the documentary was "substantially inaccurate".
The BBC's director general had already issued an apology, stating there had been "a significant failing in relation to factual correctness".
The authority has instructed the BBC to transmit a prime-time statement about its conclusions.
"As this represents a major infringement of our regulations, we are ordering the corporation to transmit a message of our determinations against it on BBC2 at 21:00, with a schedule to be determined," the statement read.
'Potential to Damage Credibility'
The watchdog's announcement stated: "The inquiry we conducted found that the documentary's omission to reveal that the voice's father held a post in the Hamas-run government was materially misleading.
"It meant that the viewers did not have vital facts which may have been very significant to their assessment of the narrator and the content he provided.
"Trust is at the core of the bond between a television network and its viewers, notably for a national broadcasting corporation such as the British Broadcasting Corporation.
"This failing had the possibility to damage the significantly high amounts of trust that the public would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The documentary was withdrawn from the BBC's streaming service in the month of February after the narrator's familial connections came to light, and in this past July an corporation's own inquiry determined it breached the organization's editorial guidelines on factual correctness.
A corporation official stated: "The authority's determination is in line with the findings of the corporation's inquiry, that there was a serious error in the film in relation to the corporation's content standards on truthfulness, which reflects regulation 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we comply with Ofcom's decision in full. We will adhere to the penalty as soon as the date and wording are finalised."