The British broadcaster was found to have committed a "significant breach" of media regulations by failing to disclose that the presenter of a documentary about the Gaza conflict was the son of a Hamas official, according to UK media regulator Ofcom.
An probe by the media regulator into Gaza: How to Survive a Warzone has determined that the film was "substantially inaccurate".
The BBC's director general had earlier expressed regret, noting there had been "a serious error in relation to factual correctness".
Ofcom has instructed the corporation to air a evening declaration about its findings.
"Since this amounts to a significant violation of our rules, we are ordering the BBC to transmit a message of our determinations against it on BBC Two at 21:00, with a timing to be determined," the statement read.
'Risk to Damage Credibility'
The authority's report stated: "Our investigation found that the documentary's lack of disclosure that the voice's male guardian served in a position in the Hamas-run authority was significantly deceptive.
"It meant that the viewers did not have critical information which may have been extremely pertinent to their evaluation of the narrator and the details he shared.
"Confidence is at the heart of the relationship between a media organization and its public, especially for a national broadcasting corporation such as the public broadcaster.
"This error had the risk to damage the exceptionally strong amounts of trust that the public would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The film was removed from the online platform in February after the presenter's family links were revealed, and in this past July an broadcaster's internal assessment determined it breached the organization's journalistic standards on factual correctness.
A corporation official commented: "The regulator's decision is in accordance with the findings of Peter Johnston's review, that there was a major oversight in the film in relation to the corporation's content standards on truthfulness, which corresponds to Rule 2.2 of the regulator's media standards.
"We have apologised for this and we accept the authority's determination in its entirety. We will follow the sanction as soon as the schedule and language are determined."