The public service broadcaster committed a "serious breach" of industry standards by failing to disclose that the presenter of a programme about Gaza was the son of a Hamas representative, as ruled by British broadcasting authority Ofcom.
An inquiry by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has found that the documentary was "materially misleading".
The BBC's director general had earlier expressed regret, stating there had been "a serious error in relation to factual correctness".
The authority has ordered the BBC to transmit a prime-time declaration about its decisions.
"Given this constitutes a serious breach of our regulations, we are ordering the broadcaster to air a message of our determinations against it on BBC Two at nine o'clock in the evening, with a timing to be determined," the statement read.
'Potential to Damage Credibility'
The authority's report declared: "Our probe found that the programme's omission to reveal that the narrator's father occupied a post in the Hamas-administered administration was substantially inaccurate.
"This implied that the public did not have vital facts which may have been highly relevant to their assessment of the narrator and the content he provided.
"Confidence is at the heart of the relationship between a broadcaster and its public, notably for a state-funded media outlet such as the BBC.
"This error had the possibility to undermine the exceptionally strong degrees of trust that viewers would have put in a documentary produced by the BBC about the conflict in Gaza."
The documentary was removed from the online platform in February after the presenter's personal associations were revealed, and in this past July an internal BBC review determined it breached the organization's journalistic standards on accuracy.
A representative for the broadcaster stated: "The regulator's decision is in accordance with the findings of the corporation's inquiry, that there was a serious error in the documentary in relation to the BBC's Editorial Guidelines on factual correctness, which corresponds to regulation 2.2 of Ofcom's Broadcasting Code.
"We have apologised for this and we accept Ofcom's decision in its entirety. We will adhere to the directive as soon as the schedule and wording are determined."