The public service broadcaster was found to have committed a "serious breach" of broadcasting rules by omitting to mention that the narrator of a documentary about Gaza was the son of a Hamas official, according to British broadcasting authority Ofcom.
An probe by the broadcasting watchdog into Gaza: How to Survive a Warzone has found that the documentary was "substantially inaccurate".
The head of the BBC had previously apologised, stating there had been "a major oversight in relation to truthfulness".
The authority has ordered the corporation to air a evening announcement about its conclusions.
"As this represents a significant violation of our regulations, we are instructing the BBC to broadcast a statement of our conclusions against it on the BBC's second channel at 21:00, with a schedule to be finalised," it said.
'Potential to Erode Trust'
The watchdog's announcement said: "Our probe concluded that the documentary's omission to reveal that the presenter's male guardian served in a post in the Hamas-administered authority was significantly deceptive.
"Consequently that the audience did not have vital facts which may have been extremely pertinent to their evaluation of the narrator and the details he presented.
"Trust is at the heart of the connection between a broadcaster and its audience, especially for a state-funded media outlet such as the British Broadcasting Corporation.
"This error had the potential to damage the exceptionally strong degrees of trust that audiences would have invested in a documentary produced by the BBC about the Gaza conflict."
The programme was removed from the online platform in February after the narrator's familial connections emerged, and in this past July an internal BBC review found it breached the corporation's editorial guidelines on truthfulness.
A BBC spokesperson said: "The authority's determination is in line with the findings of the internal assessment, that there was a significant failing in the documentary in relation to the corporation's content standards on factual correctness, which corresponds to regulation 2.2 of the authority's broadcasting regulations.
"We expressed regret for this and we agree with the authority's determination in complete. We will adhere to the sanction as soon as the schedule and wording are determined."