The British broadcaster was found to have committed a "significant breach" of media regulations by not revealing that the voice of a documentary about Gaza was the son of a Hamas representative, according to regulatory body Ofcom.
An investigation by Ofcom into the documentary titled Gaza: How to Survive a Warzone has determined that the documentary was "significantly deceptive".
The BBC's director general had earlier expressed regret, saying there had been "a major oversight in relation to accuracy".
The regulator has ordered the BBC to air a evening announcement about its conclusions.
"Since this amounts to a significant violation of our rules, we are directing the BBC to broadcast a statement of our findings against it on BBC2 at nine o'clock in the evening, with a schedule to be finalised," the regulator stated.
'Potential to Undermine Credibility'
The watchdog's statement declared: "The inquiry we conducted determined that the film's lack of disclosure that the presenter's parent held a position in the Hamas-run government was materially misleading.
"This implied that the public did not have critical information which may have been highly relevant to their evaluation of the narrator and the details he provided.
"Trust is at the center of the bond between a broadcaster and its audience, particularly for a state-funded media outlet such as the BBC.
"This oversight had the possibility to undermine the very considerable levels of credibility that audiences would have invested in a factual film from the broadcaster about the Israel-Gaza war."
The documentary was pulled from iPlayer in the month of February after the boy's family links emerged, and in the month of July an internal BBC review concluded it infringed the organization's content policies on truthfulness.
A representative for the broadcaster said: "The regulator's decision is in line with the findings of Peter Johnston's review, that there was a major oversight in the programme in relation to the BBC's Editorial Guidelines on truthfulness, which reflects clause 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we agree with the regulator's ruling in full. We will follow the sanction as soon as the schedule and wording are finalised."
