The British broadcaster committed a "significant breach" of broadcasting rules by failing to disclose that the presenter of a documentary about Gaza was the child of a Hamas official, according to British broadcasting authority Ofcom.
An probe by the broadcasting watchdog into Gaza: How to Survive a Warzone has concluded that the documentary was "substantially inaccurate".
The head of the BBC had previously apologised, saying there had been "a major oversight in relation to truthfulness".
The regulator has directed the corporation to broadcast a prime-time statement about its findings.
"Given this constitutes a significant violation of our regulations, we are ordering the broadcaster to broadcast a announcement of our findings against it on BBC2 at 21:00, with a timing to be finalised," it said.
'Risk to Undermine Trust'
The authority's statement said: "The inquiry we conducted concluded that the programme's omission to reveal that the voice's parent held a post in the Hamas-administered administration was substantially inaccurate.
"This implied that the viewers did not have critical information which may have been highly relevant to their assessment of the voice and the content he shared.
"Trust is at the heart of the connection between a broadcaster and its public, particularly for a public service broadcaster such as the British Broadcasting Corporation.
"This failing had the potential to undermine the exceptionally strong levels of trust that audiences would have invested in a documentary produced by the BBC about the Israel-Gaza war."
The film was removed from the BBC's streaming service in last February after the boy's personal associations emerged, and in this past July an internal BBC review determined it breached the broadcaster's content policies on accuracy.
A representative for the broadcaster said: "The regulator's decision is in line with the conclusions of the corporation's inquiry, that there was a major oversight in the programme in relation to the corporation's content standards on accuracy, which reflects regulation 2.2 of the authority's broadcasting regulations.
"We have apologised for this and we comply with the regulator's ruling in complete. We will adhere to the penalty as soon as the date and wording are finalised."