The British broadcaster engaged in a "major breach" of industry standards by not revealing that the narrator of a film about Gaza was the offspring of a Hamas representative, as ruled by British broadcasting authority Ofcom.
An investigation by Ofcom into Gaza: How to Survive a Warzone has determined that the film was "substantially inaccurate".
The head of the BBC had previously apologised, stating there had been "a major oversight in relation to factual correctness".
The authority has ordered the BBC to transmit a prime-time statement about its decisions.
"Given this constitutes a serious breach of our rules, we are ordering the broadcaster to broadcast a message of our conclusions against it on BBC Two at 9pm, with a timing to be determined," the statement read.
'Potential to Erode Confidence'
The authority's statement declared: "The inquiry we conducted found that the documentary's lack of disclosure that the presenter's parent held a post in the Hamas-administered administration was substantially inaccurate.
"This implied that the audience did not have vital facts which may have been highly relevant to their judgment of the presenter and the details he presented.
"Credibility is at the heart of the bond between a television network and its audience, particularly for a national broadcasting corporation such as the British Broadcasting Corporation.
"This error had the potential to erode the very considerable degrees of trust that viewers would have invested in a factual film from the broadcaster about the Gaza conflict."
The documentary was removed from the online platform in last February after the boy's familial connections emerged, and in this past July an internal BBC review found it breached the broadcaster's content policies on accuracy.
A BBC spokesperson commented: "The authority's determination is in accordance with the findings of Peter Johnston's review, that there was a serious error in the film in relation to the BBC's Editorial Guidelines on accuracy, which reflects regulation 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we comply with the authority's determination in complete. We will comply with the penalty as soon as the schedule and language are finalised."
