The British broadcaster was found to have committed a "serious breach" of broadcasting rules by failing to disclose that the presenter of a documentary about the Gaza situation was the son of a Hamas official, according to regulatory body Ofcom.
An inquiry by the broadcasting watchdog into the programme Gaza: How to Survive a Warzone has found that the programme was "substantially inaccurate".
The BBC's director general had previously apologised, saying there had been "a major oversight in relation to truthfulness".
Ofcom has ordered the broadcaster to broadcast a peak-time declaration about its decisions.
"Since this amounts to a significant violation of our regulations, we are instructing the broadcaster to broadcast a message of our determinations against it on BBC Two at nine o'clock in the evening, with a timing to be confirmed," the regulator stated.
'Possibility to Damage Credibility'
The authority's report said: "The inquiry we conducted concluded that the documentary's lack of disclosure that the voice's parent held a role in the Hamas-controlled authority was materially misleading.
"Consequently that the viewers did not have essential details which may have been extremely pertinent to their judgment of the voice and the content he shared.
"Trust is at the heart of the connection between a broadcaster and its audience, notably for a state-funded media outlet such as the BBC.
"This error had the potential to damage the exceptionally strong degrees of trust that the public would have invested in a factual film from the broadcaster about the Gaza conflict."
The film was withdrawn from iPlayer in the month of February after the boy's personal associations were revealed, and in this past July an broadcaster's internal assessment determined it breached the organization's editorial guidelines on truthfulness.
A representative for the broadcaster commented: "The Ofcom ruling is in line with the findings of Peter Johnston's review, that there was a major oversight in the documentary in relation to the BBC's Editorial Guidelines on factual correctness, which reflects Rule 2.2 of the authority's broadcasting regulations.
"We expressed regret for this and we agree with Ofcom's decision in full. We will comply with the sanction as soon as the schedule and wording are finalised."
