The British broadcaster was found to have committed a "major breach" of industry standards by not revealing that the narrator of a film about the Gaza conflict was the son of a Hamas representative, as determined by British broadcasting authority Ofcom.
An inquiry by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has concluded that the documentary was "materially misleading".
The head of the BBC had previously apologised, stating there had been "a serious error in relation to accuracy".
The authority has ordered the broadcaster to air a evening announcement about its findings.
"As this represents a significant violation of our rules, we are ordering the BBC to transmit a message of our conclusions against it on BBC Two at nine o'clock in the evening, with a schedule to be finalised," the statement read.
'Potential to Erode Trust'
The watchdog's report declared: "Our probe found that the documentary's failure to disclose that the presenter's father served in a post in the Hamas-run government was substantially inaccurate.
"This implied that the public did not have vital facts which may have been extremely pertinent to their assessment of the presenter and the information he shared.
"Confidence is at the core of the relationship between a media organization and its audience, notably for a state-funded media outlet such as the British Broadcasting Corporation.
"This oversight had the potential to undermine the significantly high amounts of confidence that audiences would have placed in a factual film from the broadcaster about the conflict in Gaza."
The film was withdrawn from the BBC's streaming service in February after the presenter's family links came to light, and in the month of July an corporation's own inquiry concluded it infringed the corporation's content policies on factual correctness.
A BBC spokesperson said: "The Ofcom ruling is in agreement with the conclusions of Peter Johnston's review, that there was a significant failing in the film in relation to the broadcaster's journalistic policies on factual correctness, which reflects clause 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we accept Ofcom's decision in complete. We will comply with the directive as soon as the date and wording are finalised."