The British broadcaster was found to have committed a "significant breach" of industry standards by failing to disclose that the narrator of a documentary about Gaza was the son of a Hamas representative, as determined by regulatory body Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has concluded that the film was "materially misleading".
The BBC's director general had earlier expressed regret, noting there had been "a major oversight in relation to accuracy".
The regulator has instructed the corporation to air a peak-time declaration about its decisions.
"Since this amounts to a serious breach of our rules, we are ordering the corporation to air a statement of our conclusions against it on BBC2 at 21:00, with a schedule to be confirmed," the statement read.
'Risk to Damage Credibility'
The regulator's statement stated: "Our investigation concluded that the documentary's lack of disclosure that the narrator's parent served in a role in the Hamas-controlled 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 information he provided.
"Confidence is at the core of the connection between a broadcaster and its audience, notably for a public service broadcaster such as the BBC.
"This oversight had the potential to undermine the exceptionally strong amounts of credibility that the public would have placed in a documentary produced by the BBC about the conflict in Gaza."
The documentary was pulled from the BBC's streaming service in February after the presenter's familial connections were revealed, and in the month of July an internal BBC review concluded it breached the corporation's editorial guidelines on truthfulness.
A BBC spokesperson commented: "The Ofcom ruling is in agreement with the results of the corporation's inquiry, that there was a major oversight in the film in relation to the corporation's content standards on factual correctness, which aligns with clause 2.2 of the authority's broadcasting regulations.
"We have apologised for this and we agree with the regulator's ruling in complete. We will comply with the penalty as soon as the timing and language are finalised."
