The public service broadcaster committed a "serious breach" of media regulations by not revealing that the presenter of a programme about the Gaza conflict was the child of a Hamas administrator, as ruled by UK media regulator Ofcom.
An probe by the media regulator 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, noting there had been "a major oversight in relation to truthfulness".
The regulator has ordered the broadcaster to air a evening declaration about its conclusions.
"Given this constitutes a major infringement of our regulations, we are instructing the broadcaster to broadcast a announcement of our conclusions against it on BBC2 at 9pm, with a schedule to be confirmed," the regulator stated.
'Possibility to Undermine Trust'
The authority's announcement stated: "The inquiry we conducted determined that the film's failure to disclose that the presenter's father served in a role in the Hamas-run government was significantly deceptive.
"It meant that the viewers did not have essential details which may have been extremely pertinent to their assessment of the presenter and the information he presented.
"Credibility is at the heart 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 erode the very considerable levels of credibility that audiences would have invested 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 emerged, and in this past July an internal BBC review found it violated the organization's content policies on factual correctness.
A BBC spokesperson said: "The authority's determination is in line with the results of the corporation's inquiry, that there was a major oversight in the film in relation to the BBC's Editorial Guidelines on truthfulness, which corresponds to clause 2.2 of Ofcom's Broadcasting Code.
"We have apologised for this and we accept Ofcom's decision in its entirety. We will comply with the penalty as soon as the date and wording are confirmed."