The British broadcaster engaged in a "significant breach" of media regulations by omitting to mention that the narrator of a documentary about the Gaza situation was the son of a Hamas administrator, as ruled by British broadcasting authority Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has determined that the documentary was "significantly deceptive".
The head of the BBC had previously apologised, noting there had been "a major oversight in relation to factual correctness".
Ofcom has instructed the broadcaster to transmit a peak-time declaration about its decisions.
"As this represents a significant violation of our rules, we are directing the BBC to air a announcement of our conclusions against it on BBC Two at 21:00, with a timing to be finalised," the statement read.
'Risk to Damage Confidence'
The watchdog's statement stated: "Our investigation determined that the programme's failure to disclose that the voice's male guardian served in a post in the Hamas-controlled government was substantially inaccurate.
"Consequently that the public did not have essential details which may have been highly relevant to their assessment of the narrator and the content he shared.
"Trust is at the center of the relationship between a broadcaster and its public, particularly for a national broadcasting corporation such as the British Broadcasting Corporation.
"This error had the potential to damage the exceptionally strong amounts of confidence that audiences would have invested in a BBC factual programme about the Gaza conflict."
The documentary was removed from the BBC's streaming service in the month of February after the narrator's personal associations emerged, and in this past July an internal BBC review concluded it violated the corporation's content policies on factual correctness.
A representative for the broadcaster stated: "The authority's determination is in line with the results of the internal assessment, that there was a significant failing in the documentary in relation to the corporation's content standards on factual correctness, which reflects Rule 2.2 of the authority's broadcasting regulations.
"We issued an apology for this and we agree with the authority's determination in its entirety. We will follow the penalty as soon as the schedule and language are finalised."
