The public service broadcaster was found to have committed a "significant breach" of industry standards by not revealing that the narrator of a documentary about the Gaza situation was the offspring of a Hamas administrator, as determined by British broadcasting authority Ofcom.
An probe by the media regulator into Gaza: How to Survive a Warzone has found that the film was "substantially inaccurate".
The chief executive of the broadcaster had previously apologised, stating there had been "a significant failing in relation to accuracy".
Ofcom has instructed the broadcaster to broadcast a prime-time statement about its conclusions.
"As this represents a major infringement of our regulations, we are instructing the BBC to air a statement of our conclusions against it on BBC Two at 9pm, with a schedule to be finalised," it said.
'Possibility to Undermine Confidence'
The regulator's announcement said: "Our investigation concluded that the programme's lack of disclosure that the narrator's parent occupied a role in the Hamas-controlled authority was materially misleading.
"This implied that the audience did not have critical information which may have been highly relevant to their judgment of the narrator and the content he presented.
"Confidence is at the core of the relationship between a media organization and its public, particularly for a public service broadcaster such as the BBC.
"This oversight had the possibility to erode the exceptionally strong levels of credibility that viewers would have put in a documentary produced by the BBC about the Israel-Gaza war."
The documentary was withdrawn from the online platform in the month of February after the narrator's family links were revealed, and in this past July an broadcaster's internal assessment concluded it breached the broadcaster's content policies on truthfulness.
A BBC spokesperson said: "The Ofcom ruling is in accordance with the findings of Peter Johnston's review, that there was a significant failing in the documentary in relation to the BBC's Editorial Guidelines on truthfulness, which aligns with clause 2.2 of Ofcom's Broadcasting Code.
"We have apologised for this and we accept the authority's determination in full. We will adhere to the penalty as soon as the timing and wording are determined."