The British broadcaster was found to have committed a "major breach" of media regulations by not revealing that the narrator of a programme about the Gaza conflict was the son of a Hamas official, according to regulatory body Ofcom.
An probe by Ofcom into Gaza: How to Survive a Warzone has found that the documentary was "substantially inaccurate".
The chief executive of the broadcaster had previously apologised, saying there had been "a major oversight in relation to factual correctness".
The authority has instructed the BBC to air a peak-time announcement about its conclusions.
"Given this constitutes a major infringement of our regulations, we are instructing the broadcaster to air a statement of our conclusions against it on BBC2 at nine o'clock in the evening, with a timing to be finalised," the regulator stated.
'Potential to Undermine Trust'
The watchdog's announcement declared: "Our investigation determined that the documentary's lack of disclosure that the narrator's parent held a role in the Hamas-controlled administration was substantially inaccurate.
"Consequently that the audience did not have essential details which may have been highly relevant to their evaluation of the narrator and the content he presented.
"Trust is at the heart of the relationship between a media organization and its viewers, particularly for a national broadcasting corporation such as the British Broadcasting Corporation.
"This failing had the potential to undermine the exceptionally strong amounts of credibility that the public would have put in a BBC factual programme about the Israel-Gaza war."
The programme was removed from the BBC's streaming service in the month of February after the narrator's familial connections were revealed, and in July an broadcaster's internal assessment determined it breached the corporation's editorial guidelines on truthfulness.
A corporation official stated: "The authority's determination is in line with the findings of the corporation's inquiry, that there was a major oversight in the film in relation to the broadcaster's journalistic policies on accuracy, which reflects regulation 2.2 of the regulator's media standards.
"We expressed regret for this and we accept the regulator's ruling in complete. We will follow the sanction as soon as the timing and wording are confirmed."