The public service broadcaster was found to have committed a "major breach" of broadcasting rules by omitting to mention that the narrator of a film about the Gaza conflict was the son of a Hamas official, as determined by British broadcasting authority Ofcom.
An inquiry by Ofcom into the programme Gaza: How to Survive a Warzone has concluded that the documentary was "significantly deceptive".
The head of the BBC had already issued an apology, stating there had been "a significant failing in relation to factual correctness".
The regulator has instructed the BBC to air a prime-time announcement about its conclusions.
"Since this amounts to a major infringement of our rules, we are ordering the BBC to transmit a statement of our determinations against it on the BBC's second channel at 21:00, with a schedule to be determined," the regulator stated.
'Potential to Damage Credibility'
The watchdog's announcement stated: "The inquiry we conducted determined that the documentary's omission to reveal that the presenter's father served in a position in the Hamas-run administration was significantly deceptive.
"It meant that the public did not have vital facts which may have been highly relevant to their assessment of the voice and the content he presented.
"Trust is at the heart of the connection between a broadcaster and its public, notably for a public service broadcaster such as the British Broadcasting Corporation.
"This oversight had the risk to erode the significantly high degrees of credibility that the public would have placed in a BBC factual programme about the Israel-Gaza war."
The film was removed from iPlayer in the month of February after the boy's familial connections came to light, and in this past July an internal BBC review found it breached the broadcaster's content policies on truthfulness.
A BBC spokesperson commented: "The authority's determination is in line with the results of the internal assessment, that there was a significant failing in the film in relation to the corporation's content standards on factual correctness, which reflects clause 2.2 of the regulator's media standards.
"We expressed regret for this and we agree with Ofcom's decision in its entirety. We will comply with the penalty as soon as the timing and wording are finalised."