The British broadcaster engaged in a "major breach" of industry standards by omitting to mention that the voice of a film about Gaza was the child of a Hamas administrator, as determined by UK media regulator Ofcom.
An investigation by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has found that the film was "materially misleading".
The chief executive of the broadcaster had already issued an apology, stating there had been "a significant failing in relation to truthfulness".
The regulator has instructed the broadcaster to air a prime-time announcement about its decisions.
"As this represents a serious breach of our regulations, we are instructing the BBC to transmit a announcement of our conclusions against it on BBC2 at 9pm, with a date to be determined," the statement read.
'Possibility to Damage Credibility'
The regulator's announcement said: "The inquiry we conducted concluded that the film's lack of disclosure that the presenter's parent served in a post in the Hamas-administered government was significantly deceptive.
"Consequently that the viewers did not have critical information which may have been very significant to their evaluation of the narrator and the content he presented.
"Trust is at the core of the bond between a broadcaster and its viewers, particularly for a state-funded media outlet such as the BBC.
"This oversight had the potential to damage the exceptionally strong degrees of credibility that audiences would have placed in a factual film from the broadcaster about the Gaza conflict."
The documentary was pulled from the online platform in February after the narrator's familial connections were revealed, and in the month of July an internal BBC review concluded it violated the organization's editorial guidelines on factual correctness.
A corporation official said: "The regulator's decision is in line with the conclusions of the corporation's inquiry, that there was a major oversight in the documentary in relation to the corporation's content standards on accuracy, which corresponds to regulation 2.2 of the regulator's media standards.
"We issued an apology for this and we comply with the authority's determination in complete. We will adhere to the sanction as soon as the schedule and wording are confirmed."