The public service broadcaster was found to have committed a "significant breach" of media regulations by omitting to mention that the voice of a programme about the Gaza conflict was the son of a Hamas administrator, according to UK media regulator Ofcom.
An investigation by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has concluded that the documentary was "materially misleading".
The chief executive of the broadcaster had earlier expressed regret, stating there had been "a serious error in relation to factual correctness".
Ofcom has ordered the broadcaster to broadcast a evening declaration about its conclusions.
"As this represents a major infringement of our regulations, we are instructing the BBC to broadcast a announcement of our determinations against it on BBC2 at 21:00, with a date to be determined," the statement read.
'Potential to Undermine Confidence'
The regulator's statement said: "The inquiry we conducted concluded that the programme's omission to reveal that the narrator's male guardian held a post in the Hamas-administered government was significantly deceptive.
"This implied that the audience did not have vital facts which may have been extremely pertinent to their evaluation of the presenter and the information he provided.
"Confidence is at the core of the bond between a media organization and its public, notably for a state-funded media outlet such as the public broadcaster.
"This oversight had the possibility to undermine the very considerable amounts of confidence that viewers would have invested in a documentary produced by the BBC about the Israel-Gaza war."
The documentary was pulled from the BBC's streaming service in the month of February after the boy's familial connections came to light, and in this past July an broadcaster's internal assessment determined it violated the corporation's editorial guidelines on accuracy.
A representative for the broadcaster commented: "The Ofcom ruling is in agreement with the conclusions of Peter Johnston's review, that there was a serious error in the film in relation to the corporation's content standards on truthfulness, which aligns with clause 2.2 of the authority's broadcasting regulations.
"We expressed regret for this and we accept the regulator's ruling in complete. We will comply with the penalty as soon as the date and wording are finalised."