The British broadcaster was found to have committed a "significant breach" of industry standards by failing to disclose that the presenter of a documentary about the Gaza situation was the offspring of a Hamas representative, as ruled by regulatory body Ofcom.
An probe by the media regulator into the documentary titled Gaza: How to Survive a Warzone has determined that the programme was "materially misleading".
The chief executive of the broadcaster had earlier expressed regret, stating there had been "a major oversight in relation to factual correctness".
The authority has directed the corporation to transmit a evening declaration about its findings.
"Since this amounts to a serious breach of our rules, we are directing the BBC to air a announcement of our findings against it on BBC2 at 21:00, with a timing to be finalised," the regulator stated.
'Risk to Erode Confidence'
The watchdog's statement declared: "Our probe found that the programme's lack of disclosure that the presenter's parent occupied a post in the Hamas-controlled administration was substantially inaccurate.
"It meant that the audience did not have vital facts which may have been highly relevant to their assessment of the presenter and the content he provided.
"Credibility is at the core of the bond between a broadcaster and its public, notably for a national broadcasting corporation such as the BBC.
"This error had the possibility to erode the significantly high levels of confidence that viewers would have put in a documentary produced by the BBC about the conflict in Gaza."
The film was withdrawn from the BBC's streaming service in February after the boy's familial connections emerged, and in the month of July an corporation's own inquiry found it violated the broadcaster's editorial guidelines on truthfulness.
A representative for the broadcaster said: "The authority's determination is in line with the results of Peter Johnston's review, that there was a major oversight in the film in relation to the corporation's content standards on accuracy, which reflects Rule 2.2 of the regulator's media standards.
"We issued an apology for this and we agree with the regulator's ruling in full. We will comply with the penalty as soon as the timing and wording are determined."