The British 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 offspring of a Hamas representative, as determined by regulatory body Ofcom.
An inquiry by the broadcasting watchdog into the documentary titled Gaza: How to Survive a Warzone has concluded that the programme was "materially misleading".
The head of the BBC had previously apologised, stating there had been "a major oversight in relation to accuracy".
The authority has instructed the corporation to broadcast a evening announcement about its decisions.
"Since this amounts to a serious breach of our regulations, we are directing the broadcaster to transmit a statement of our determinations against it on BBC2 at 9pm, with a schedule to be finalised," the regulator stated.
'Potential to Damage Trust'
The watchdog's statement said: "Our probe concluded that the documentary's failure to disclose that the presenter's male guardian occupied a position in the Hamas-run authority was substantially inaccurate.
"This implied that the audience did not have critical information which may have been highly relevant to their assessment of the narrator and the details he provided.
"Confidence is at the core of the bond between a media organization and its public, notably for a public service broadcaster such as the British Broadcasting Corporation.
"This oversight had the potential to undermine the exceptionally strong amounts of trust that viewers would have placed in a documentary produced by the BBC about the Israel-Gaza war."
The film was removed from the online platform in February after the boy's family links emerged, and in the month of July an internal BBC review concluded it breached the broadcaster's editorial guidelines on factual correctness.
A representative for the broadcaster stated: "The regulator's decision is in line with the results of the internal assessment, that there was a significant failing in the film in relation to the BBC's Editorial Guidelines on truthfulness, which corresponds to regulation 2.2 of the regulator's media standards.
"We expressed regret for this and we comply with the regulator's ruling in full. We will adhere to the sanction as soon as the schedule and language are finalised."