The public service broadcaster committed a "major breach" of media regulations by omitting to mention that the presenter of a documentary about the Gaza conflict was the offspring of a Hamas official, as ruled by regulatory body Ofcom.
An investigation by the media regulator into the documentary titled Gaza: How to Survive a Warzone has determined that the programme was "substantially inaccurate".
The head of the BBC had previously apologised, noting there had been "a significant failing in relation to truthfulness".
The authority has instructed the BBC to air a prime-time statement about its decisions.
"As this represents a significant violation of our rules, we are instructing the broadcaster to air a message of our determinations against it on BBC Two at nine o'clock in the evening, with a schedule to be determined," it said.
'Possibility to Undermine Trust'
The watchdog's report declared: "The inquiry we conducted concluded that the documentary's failure to disclose that the presenter's parent held a role in the Hamas-administered government was significantly deceptive.
"Consequently that the viewers did not have vital facts which may have been very significant to their assessment of the narrator and the details he shared.
"Trust is at the center of the connection between a television network and its public, especially for a state-funded media outlet such as the British Broadcasting Corporation.
"This error had the possibility to erode the very considerable amounts of confidence that viewers would have invested in a documentary produced by the BBC about the Israel-Gaza war."
The film was pulled from iPlayer in the month of February after the narrator's familial connections emerged, and in this past July an broadcaster's internal assessment found it infringed the broadcaster's journalistic standards on factual correctness.
A BBC spokesperson commented: "The regulator's decision is in accordance with the results of the corporation's inquiry, that there was a major oversight in the film in relation to the broadcaster's journalistic policies on accuracy, which aligns with clause 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we comply with the regulator's ruling in complete. We will follow the penalty as soon as the date and wording are confirmed."
