The public service broadcaster was found to have committed a "significant breach" of industry standards by omitting to mention that the presenter of a programme about the Gaza situation was the child of a Hamas representative, as ruled by British broadcasting authority Ofcom.
An probe by the media regulator into the documentary titled Gaza: How to Survive a Warzone has concluded that the film was "substantially inaccurate".
The head of the BBC had earlier expressed regret, saying there had been "a serious error in relation to truthfulness".
The regulator has directed the broadcaster to transmit a prime-time declaration about its findings.
"Given this constitutes a significant violation of our regulations, we are instructing the BBC to broadcast a announcement of our conclusions against it on the BBC's second channel at 9pm, with a date to be finalised," the regulator stated.
'Possibility to Erode Confidence'
The watchdog's announcement stated: "The inquiry we conducted concluded that the documentary's failure to disclose that the narrator's father occupied a role in the Hamas-controlled government was materially misleading.
"Consequently that the audience did not have vital facts which may have been extremely pertinent to their judgment of the narrator and the information he provided.
"Trust is at the core of the bond between a media organization and its viewers, particularly for a national broadcasting corporation such as the public broadcaster.
"This error had the risk to erode the exceptionally strong amounts of trust that the public would have placed in a factual film from the broadcaster about the conflict in Gaza."
The documentary was withdrawn from the online platform in February after the presenter's familial connections were revealed, and in the month of July an broadcaster's internal assessment determined it violated the organization's content policies on factual correctness.
A BBC spokesperson said: "The Ofcom ruling is in agreement with the findings of Peter Johnston's review, that there was a major oversight in the programme in relation to the corporation's content standards on truthfulness, which aligns with Rule 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we comply with Ofcom's decision in complete. We will comply with the penalty as soon as the schedule and wording are determined."
