The public service broadcaster was found to have committed a "significant breach" of media regulations by not revealing that the presenter of a documentary about the Gaza situation was the son of a Hamas administrator, as determined by regulatory body Ofcom.
An investigation by Ofcom into Gaza: How to Survive a Warzone has determined that the documentary was "substantially inaccurate".
The head of the BBC had previously apologised, saying there had been "a serious error in relation to accuracy".
The authority has ordered the BBC to air a prime-time declaration about its findings.
"Given this constitutes a serious breach of our code, we are directing the corporation to air a statement of our findings against it on BBC2 at 21:00, with a schedule to be determined," it said.
'Risk to Undermine Confidence'
The watchdog's statement stated: "The inquiry we conducted found that the film's lack of disclosure that the voice's parent held a role in the Hamas-controlled administration was materially misleading.
"It meant that the audience did not have critical information which may have been highly relevant to their evaluation of the presenter and the details he provided.
"Confidence is at the center of the relationship between a television network and its audience, particularly for a public service broadcaster such as the BBC.
"This oversight had the potential to damage the significantly high levels of credibility that audiences would have put in a documentary produced by the BBC about the conflict in Gaza."
The film was pulled from the online platform in last February after the presenter's family links were revealed, and in the month of July an broadcaster's internal assessment concluded it infringed the organization's journalistic standards on factual correctness.
A representative for the broadcaster said: "The authority's determination is in accordance with the findings of the corporation's inquiry, that there was a serious error in the programme in relation to the BBC's Editorial Guidelines on accuracy, which corresponds to clause 2.2 of the regulator's media standards.
"We expressed regret for this and we accept Ofcom's decision in its entirety. We will adhere to the penalty as soon as the timing and language are determined."
