The public service broadcaster engaged in a "significant breach" of industry standards by not revealing that the presenter of a programme about Gaza was the child of a Hamas administrator, as determined by British broadcasting authority Ofcom.
An investigation by Ofcom into Gaza: How to Survive a Warzone has concluded that the programme was "substantially inaccurate".
The head of the BBC had previously apologised, saying there had been "a major oversight in relation to accuracy".
The authority has directed the BBC to air a peak-time declaration about its decisions.
"As this represents a significant violation of our regulations, we are instructing the broadcaster to broadcast a statement of our determinations against it on the BBC's second channel at 21:00, with a schedule to be confirmed," the statement read.
'Potential to Damage Confidence'
The regulator's statement declared: "The inquiry we conducted determined that the documentary's lack of disclosure that the voice's parent served in a role in the Hamas-controlled authority was significantly deceptive.
"It meant that the audience did not have vital facts which may have been very significant to their evaluation of the presenter and the content he provided.
"Credibility is at the core of the connection between a broadcaster and its audience, especially for a national broadcasting corporation such as the BBC.
"This oversight had the possibility to damage the significantly high degrees of confidence that the public would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The documentary was withdrawn from the online platform in the month of February after the boy's family links were revealed, and in July an internal BBC review determined it infringed the organization's content policies on accuracy.
A corporation official commented: "The Ofcom ruling is in line with the results 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 Ofcom's Broadcasting Code.
"We expressed regret for this and we accept the authority's determination in full. We will comply with the penalty as soon as the schedule and wording are confirmed."
