The public service broadcaster committed a "major breach" of industry standards by omitting to mention that the presenter of a programme about Gaza was the offspring of a Hamas representative, as ruled by UK media regulator Ofcom.
An investigation by Ofcom into Gaza: How to Survive a Warzone has concluded that the documentary was "substantially inaccurate".
The chief executive of the broadcaster had earlier expressed regret, saying there had been "a significant failing in relation to factual correctness".
The regulator has ordered the BBC to air a prime-time declaration about its conclusions.
"As this represents a significant violation of our code, we are ordering the BBC to transmit a announcement of our findings against it on BBC2 at 9pm, with a timing to be finalised," the statement read.
'Potential to Undermine Credibility'
The watchdog's statement declared: "Our probe concluded that the film's omission to reveal that the voice's male guardian served in a position in the Hamas-administered government was significantly deceptive.
"It meant that the viewers did not have critical information which may have been extremely pertinent to their evaluation of the narrator and the content he shared.
"Confidence is at the core of the relationship between a media organization and its viewers, notably for a public service broadcaster such as the BBC.
"This oversight had the possibility to undermine the exceptionally strong levels of trust that viewers would have put in a BBC factual programme about the Israel-Gaza war."
The film was withdrawn from the BBC's streaming service in the month of February after the boy's family links emerged, and in this past July an broadcaster's internal assessment concluded it breached the corporation's journalistic standards on accuracy.
A representative for the broadcaster said: "The regulator's decision is in agreement with the conclusions of the internal assessment, that there was a major oversight in the programme in relation to the broadcaster's journalistic policies on factual correctness, which corresponds to Rule 2.2 of the authority's broadcasting regulations.
"We have apologised for this and we accept the regulator's ruling in full. We will comply with the penalty as soon as the schedule and wording are finalised."
