The public service broadcaster committed a "major breach" of broadcasting rules by failing to disclose that the presenter of a documentary about Gaza was the son of a Hamas representative, as ruled by British broadcasting authority Ofcom.
An inquiry by the media regulator into the documentary titled Gaza: How to Survive a Warzone has determined that the documentary was "materially misleading".
The BBC's director general had earlier expressed regret, stating there had been "a significant failing in relation to accuracy".
The authority has ordered the corporation to transmit a evening statement about its conclusions.
"Given this constitutes a serious breach of our code, we are instructing the BBC to transmit a statement of our findings against it on the BBC's second channel at 21:00, with a date to be confirmed," the regulator stated.
'Possibility to Erode Trust'
The regulator's report declared: "Our probe determined that the programme's omission to reveal that the narrator's parent occupied a position in the Hamas-run authority was materially misleading.
"It meant that the audience did not have critical information which may have been highly relevant to their evaluation of the voice and the content he provided.
"Trust is at the core of the connection between a media organization and its public, notably for a public service broadcaster such as the public broadcaster.
"This failing had the possibility to erode the very considerable degrees of trust that audiences would have placed in a documentary produced by the BBC about the conflict in Gaza."
The documentary was pulled from iPlayer in last February after the boy's familial connections came to light, and in the month of July an broadcaster's internal assessment concluded it breached the broadcaster's journalistic standards on truthfulness.
A representative for the broadcaster commented: "The regulator's decision is in line with the conclusions of Peter Johnston's review, that there was a significant failing in the documentary in relation to the corporation's content standards on truthfulness, which reflects clause 2.2 of the regulator's media standards.
"We expressed regret for this and we accept the authority's determination in its entirety. We will comply with the penalty as soon as the date and wording are finalised."
