The British broadcaster was found to have committed a "significant breach" of media regulations by not revealing that the narrator of a film about Gaza was the offspring of a Hamas administrator, as ruled by regulatory body Ofcom.
An inquiry by the media regulator into the documentary titled Gaza: How to Survive a Warzone has found that the film was "significantly deceptive".
The chief executive of the broadcaster had already issued an apology, stating there had been "a serious error in relation to truthfulness".
The regulator has instructed the corporation to broadcast a evening statement about its conclusions.
"As this represents a major infringement of our regulations, we are ordering the broadcaster to air a statement of our determinations against it on BBC Two at 9pm, with a schedule to be determined," the statement read.
'Risk to Erode Credibility'
The watchdog's statement stated: "The inquiry we conducted determined that the documentary's omission to reveal that the voice's parent held a role in the Hamas-controlled authority was materially misleading.
"This implied that the audience did not have vital facts which may have been highly relevant to their evaluation of the voice and the content he provided.
"Credibility is at the heart of the connection between a media organization and its public, notably for a state-funded media outlet such as the BBC.
"This failing had the possibility to damage the exceptionally strong amounts of trust that the public would have put in a factual film from the broadcaster about the Israel-Gaza war."
The film was removed from iPlayer in last February after the boy's personal associations came to light, and in this past July an corporation's own inquiry determined it breached the broadcaster's journalistic standards on truthfulness.
A BBC spokesperson commented: "The Ofcom ruling is in agreement with the results of the corporation's inquiry, that there was a major oversight in the film in relation to the corporation's content standards on truthfulness, which reflects clause 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we accept the authority's determination in its entirety. We will comply with the penalty as soon as the timing and wording are confirmed."