The public service broadcaster was found to have committed a "significant breach" of broadcasting rules by failing to disclose that the presenter of a documentary about the Gaza situation was the son of a Hamas administrator, as ruled by regulatory body Ofcom.
An inquiry by Ofcom into Gaza: How to Survive a Warzone has found that the documentary was "materially misleading".
The head of the BBC had earlier expressed regret, stating there had been "a major oversight in relation to truthfulness".
Ofcom has ordered the corporation to broadcast a evening declaration about its decisions.
"Since this amounts to a significant violation of our rules, we are instructing the BBC to transmit a statement of our findings against it on BBC Two at nine o'clock in the evening, with a timing to be confirmed," the statement read.
'Possibility to Erode Trust'
The watchdog's statement stated: "The inquiry we conducted found that the programme's omission to reveal that the narrator's parent served in a post in the Hamas-controlled government was significantly deceptive.
"Consequently that the public did not have critical information which may have been highly relevant to their evaluation of the narrator and the information he provided.
"Confidence is at the heart of the relationship between a media organization and its public, especially for a state-funded media outlet such as the British Broadcasting Corporation.
"This oversight had the risk to undermine the significantly high levels of confidence that the public would have put in a documentary produced by the BBC about the Israel-Gaza war."
The programme was withdrawn from the online platform in February after the narrator's familial connections were revealed, and in this past July an internal BBC review determined it breached the corporation's editorial guidelines on factual correctness.
A BBC spokesperson stated: "The authority's determination is in line with the conclusions of the corporation's inquiry, that there was a major oversight in the programme in relation to the corporation's content standards on factual correctness, which aligns with Rule 2.2 of the authority's broadcasting regulations.
"We issued an apology for this and we agree with the authority's determination in full. We will follow the penalty as soon as the timing and wording are confirmed."
