The public service broadcaster engaged in a "major breach" of media regulations by failing to disclose that the presenter of a documentary about Gaza was the offspring of a Hamas administrator, as ruled by UK media regulator Ofcom.
An investigation 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 previously apologised, stating there had been "a serious error in relation to accuracy".
The authority has directed the BBC to transmit a evening declaration about its conclusions.
"Given this constitutes a significant violation of our code, we are instructing the corporation to air a statement of our findings against it on the BBC's second channel at 9pm, with a schedule to be finalised," it said.
'Possibility to Damage Trust'
The watchdog's statement said: "Our investigation found that the programme's omission to reveal that the presenter's father held a position in the Hamas-administered administration was significantly deceptive.
"Consequently that the audience did not have essential details which may have been extremely pertinent to their evaluation of the presenter and the details he presented.
"Credibility is at the heart of the bond between a broadcaster and its audience, notably for a state-funded media outlet such as the public broadcaster.
"This error had the possibility to damage the exceptionally strong levels of trust that viewers would have placed in a BBC factual programme about the conflict in Gaza."
The film was withdrawn from iPlayer in February after the boy's family links were revealed, and in July an broadcaster's internal assessment found it violated the corporation's journalistic standards on truthfulness.
A representative for the broadcaster commented: "The regulator's decision is in accordance with the conclusions of Peter Johnston's review, that there was a serious error in the film in relation to the BBC's Editorial Guidelines on accuracy, which aligns with clause 2.2 of the regulator's media standards.
"We have apologised for this and we accept Ofcom's decision in its entirety. We will comply with the sanction as soon as the schedule and wording are determined."