The British broadcaster committed a "major breach" of media regulations by omitting to mention that the presenter of a programme about the Gaza conflict was the offspring of a Hamas official, as ruled by UK media regulator Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has found that the film was "significantly deceptive".
The BBC's director general had previously apologised, saying there had been "a significant failing in relation to factual correctness".
The regulator has instructed the BBC to broadcast a prime-time statement about its decisions.
"Given this constitutes a major infringement of our rules, we are directing the BBC to transmit a message of our findings against it on BBC2 at nine o'clock in the evening, with a schedule to be determined," the statement read.
'Risk to Erode Confidence'
The watchdog's statement stated: "Our investigation found that the programme's failure to disclose that the presenter's male guardian held a role in the Hamas-controlled government was materially misleading.
"It meant that the viewers did not have vital facts which may have been highly relevant to their assessment of the voice and the content he shared.
"Trust is at the core of the connection between a television network and its public, especially for a state-funded media outlet such as the BBC.
"This failing had the possibility to damage the significantly high degrees of trust that viewers would have put in a documentary produced by the BBC about the conflict in Gaza."
The programme was pulled from the online platform in February after the boy's familial connections came to light, and in the month of July an internal BBC review determined it infringed the organization's editorial guidelines on truthfulness.
A BBC spokesperson said: "The regulator's decision is in agreement with the conclusions of Peter Johnston's review, that there was a major oversight in the programme in relation to the broadcaster's journalistic policies on accuracy, which corresponds to regulation 2.2 of the regulator's media standards.
"We have apologised for this and we comply with Ofcom's decision in complete. We will adhere to the penalty as soon as the timing and wording are determined."