The British broadcaster committed a "significant breach" of industry standards by failing to disclose that the presenter of a documentary about Gaza was the offspring of a Hamas official, as determined by UK media regulator Ofcom.
An investigation by Ofcom into the documentary titled Gaza: How to Survive a Warzone has found that the documentary was "substantially inaccurate".
The BBC's director general had already issued an apology, stating there had been "a major oversight in relation to truthfulness".
Ofcom has directed the broadcaster to air a evening statement about its conclusions.
"Since this amounts to a serious breach of our code, we are directing the BBC to air a announcement of our determinations against it on the BBC's second channel at nine o'clock in the evening, with a timing to be finalised," the statement read.
'Risk to Damage Credibility'
The authority's announcement declared: "Our probe found that the programme's omission to reveal that the narrator's parent served in a post in the Hamas-run authority was substantially inaccurate.
"Consequently that the public did not have vital facts which may have been very significant to their assessment of the narrator and the content he provided.
"Confidence is at the center of the relationship between a media organization and its viewers, especially for a state-funded media outlet such as the public broadcaster.
"This failing had the risk to erode the significantly high amounts of confidence that audiences would have put in a factual film from the broadcaster about the conflict in Gaza."
The film was withdrawn from the online platform in last February after the boy's familial connections came to light, and in the month of July an corporation's own inquiry concluded it infringed the broadcaster's content policies on factual correctness.
A representative for the broadcaster commented: "The regulator's decision is in accordance with the results of the internal assessment, that there was a major oversight in the programme in relation to the BBC's Editorial Guidelines on accuracy, which corresponds to regulation 2.2 of Ofcom's Broadcasting Code.
"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 schedule and wording are determined."