The British broadcaster engaged in a "significant breach" of media regulations by failing to disclose that the voice of a programme about Gaza was the offspring of a Hamas representative, according to regulatory body Ofcom.
An investigation by the media regulator into the documentary titled Gaza: How to Survive a Warzone has found that the documentary was "materially misleading".
The head of the BBC had already issued an apology, stating there had been "a serious error in relation to truthfulness".
The regulator has directed the broadcaster to air a peak-time announcement about its decisions.
"Given this constitutes a significant violation of our rules, we are instructing the BBC to air a statement of our findings against it on BBC Two at 21:00, with a date to be confirmed," the regulator stated.
'Potential to Erode Trust'
The authority's statement stated: "Our investigation determined that the film's lack of disclosure that the voice's parent occupied a position in the Hamas-administered government was significantly deceptive.
"This implied that the audience did not have critical information which may have been highly relevant to their evaluation of the presenter and the information he provided.
"Credibility is at the center of the connection between a broadcaster and its public, notably for a state-funded media outlet such as the British Broadcasting Corporation.
"This error had the potential to damage the exceptionally strong amounts of credibility that audiences would have invested in a BBC factual programme about the Israel-Gaza war."
The documentary was pulled from iPlayer in the month of February after the presenter's familial connections came to light, and in the month of July an broadcaster's internal assessment concluded it violated the organization's editorial guidelines on truthfulness.
A representative for the broadcaster stated: "The regulator's decision is in agreement with the findings of the corporation's inquiry, that there was a serious error in the programme in relation to the BBC's Editorial Guidelines on factual correctness, which reflects Rule 2.2 of Ofcom's Broadcasting Code.
"We expressed regret for this and we comply with the authority's determination in complete. We will comply with the penalty as soon as the timing and wording are confirmed."
