The British broadcaster was found to have committed a "major breach" of industry standards by not revealing that the presenter of a documentary about the Gaza situation was the son of a Hamas administrator, according to UK media regulator Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has determined that the programme was "materially misleading".
The head of the BBC had previously apologised, saying there had been "a major oversight in relation to accuracy".
The regulator has instructed the BBC to air a peak-time declaration about its findings.
"As this represents a major infringement of our code, we are directing the BBC to broadcast a statement of our determinations against it on the BBC's second channel at 9pm, with a date to be finalised," the statement read.
'Possibility to Erode Credibility'
The authority's report said: "Our probe found that the programme's omission to reveal that the voice's male guardian served in a role in the Hamas-controlled government was significantly deceptive.
"This implied that the public did not have critical information which may have been highly relevant to their assessment of the presenter and the information he presented.
"Credibility is at the heart of the connection between a media organization and its public, particularly for a state-funded media outlet such as the BBC.
"This failing had the risk to damage the very considerable degrees of trust that the public would have placed in a BBC factual programme about the Gaza conflict."
The documentary was pulled from iPlayer in last February after the presenter's familial connections were revealed, and in this past July an broadcaster's internal assessment concluded it violated the organization's journalistic standards on factual correctness.
A representative for the broadcaster stated: "The authority's determination is in line 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 regulation 2.2 of the authority's broadcasting regulations.
"We issued an apology for this and we comply with the authority's determination in complete. We will adhere to the penalty as soon as the date and wording are finalised."