The public service broadcaster was found to have committed a "major breach" of broadcasting rules by not revealing that the voice of a film about Gaza was the child of a Hamas administrator, as determined by UK media regulator Ofcom.
An inquiry by Ofcom into the documentary titled Gaza: How to Survive a Warzone has determined that the programme was "substantially inaccurate".
The BBC's director general had already issued an apology, stating there had been "a serious error in relation to truthfulness".
The authority has directed the BBC to broadcast a peak-time declaration about its conclusions.
"Since this amounts to a serious breach of our code, we are ordering the BBC to transmit a announcement of our determinations against it on BBC Two at nine o'clock in the evening, with a date to be confirmed," the statement read.
'Risk to Erode Trust'
The watchdog's announcement stated: "Our probe determined that the programme's failure to disclose that the narrator's male guardian served in a role in the Hamas-controlled administration was significantly deceptive.
"This implied that the public did not have vital facts which may have been highly relevant to their judgment of the voice and the details he presented.
"Confidence is at the core of the bond between a television network and its viewers, particularly for a national broadcasting corporation such as the British Broadcasting Corporation.
"This error had the potential to erode the very considerable degrees of confidence that viewers would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The film was withdrawn from the online platform in the month of February after the boy's familial connections were revealed, and in July an internal BBC review found it infringed the corporation's content policies on factual correctness.
A BBC spokesperson stated: "The regulator's decision is in line with the findings of the internal assessment, that there was a major oversight in the documentary in relation to the broadcaster's journalistic policies on factual correctness, which corresponds to regulation 2.2 of the regulator's media standards.
"We expressed regret for this and we comply with Ofcom's decision in full. We will adhere to the penalty as soon as the date and language are finalised."
