The British broadcaster was found to have committed a "serious breach" of industry standards by not revealing that the presenter of a programme about Gaza was the child of a Hamas administrator, as ruled by regulatory body Ofcom.
An inquiry by the media regulator into the documentary titled Gaza: How to Survive a Warzone has concluded that the documentary was "substantially inaccurate".
The BBC's director general had previously apologised, saying there had been "a serious error in relation to factual correctness".
The authority has instructed the BBC to transmit a evening declaration about its conclusions.
"Since this amounts to a significant violation of our regulations, we are directing the BBC to broadcast a message of our conclusions against it on BBC Two at nine o'clock in the evening, with a schedule to be confirmed," it said.
'Potential to Erode Trust'
The authority's announcement declared: "The inquiry we conducted found that the film's lack of disclosure that the narrator's father served in a role in the Hamas-administered administration was materially misleading.
"It meant that the public did not have critical information which may have been extremely pertinent to their assessment of the narrator and the details he shared.
"Trust is at the center of the relationship between a television network and its public, especially for a national broadcasting corporation such as the British Broadcasting Corporation.
"This oversight had the risk to damage the significantly high amounts of trust that audiences would have invested in a BBC factual programme about the Israel-Gaza war."
The documentary was pulled from the online platform in February after the presenter's familial connections came to light, and in this past July an internal BBC review concluded it breached the broadcaster's content policies on factual correctness.
A corporation official stated: "The regulator's decision is in line with the results of Peter Johnston's review, that there was a significant failing in the film in relation to the broadcaster's journalistic policies on truthfulness, which aligns with clause 2.2 of the regulator's media standards.
"We expressed regret for this and we comply with Ofcom's decision in complete. We will comply with the sanction as soon as the schedule and wording are finalised."
