The British broadcaster was found to have committed a "significant breach" of media regulations by failing to disclose that the presenter of a film about the Gaza situation was the son of a Hamas administrator, as ruled by UK media regulator Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has concluded that the documentary was "substantially inaccurate".
The head of the BBC had already issued an apology, noting there had been "a major oversight in relation to factual correctness".
Ofcom has instructed the broadcaster to transmit a evening announcement about its conclusions.
"As this represents a major infringement of our rules, we are ordering the BBC to broadcast a message of our conclusions against it on BBC Two at 9pm, with a schedule to be confirmed," the regulator stated.
'Potential to Undermine Confidence'
The regulator's statement declared: "The inquiry we conducted concluded that the programme's failure to disclose that the presenter's male guardian served in a position in the Hamas-controlled administration was materially misleading.
"Consequently that the audience did not have essential details which may have been highly relevant to their assessment of the voice and the information he provided.
"Confidence is at the core of the bond between a broadcaster and its audience, especially for a public service broadcaster such as the British Broadcasting Corporation.
"This error had the risk to erode the very considerable levels of trust that audiences would have put in a BBC factual programme about the Israel-Gaza war."
The documentary was withdrawn from iPlayer in the month of February after the boy's personal associations came to light, and in this past July an internal BBC review found it infringed the organization's content policies on accuracy.
A representative for the broadcaster said: "The Ofcom ruling is in agreement with the findings of Peter Johnston's review, that there was a major oversight in the documentary in relation to the broadcaster's journalistic policies on accuracy, which reflects Rule 2.2 of the regulator's media standards.
"We issued an apology for this and we accept Ofcom's decision in complete. We will follow the sanction as soon as the timing and wording are determined."