The British broadcaster was found to have committed a "major breach" of industry standards by failing to disclose that the presenter of a documentary about Gaza was the son of a Hamas administrator, according to British broadcasting authority Ofcom.
An investigation by the media regulator into the documentary titled Gaza: How to Survive a Warzone has determined that the programme was "substantially inaccurate".
The chief executive of the broadcaster had previously apologised, noting there had been "a major oversight in relation to truthfulness".
Ofcom has instructed the broadcaster to air a prime-time statement about its decisions.
"Since this amounts to a major infringement of our code, we are instructing the BBC to broadcast a statement of our conclusions against it on BBC Two at nine o'clock in the evening, with a date to be determined," the statement read.
'Risk to Erode Confidence'
The watchdog's report stated: "Our probe concluded that the film's omission to reveal that the voice's parent held a post in the Hamas-run administration was significantly deceptive.
"It meant that the viewers did not have vital facts which may have been very significant to their judgment of the presenter and the content he provided.
"Confidence is at the heart of the relationship between a broadcaster and its public, particularly for a national broadcasting corporation such as the British Broadcasting Corporation.
"This oversight had the possibility to erode the very considerable amounts of confidence that the public would have put in a documentary produced by the BBC about the Israel-Gaza war."
The programme was removed from the BBC's streaming service in February after the boy's familial connections were revealed, and in July an internal BBC review found it violated the broadcaster's content policies on factual correctness.
A representative for the broadcaster said: "The regulator's decision is in line with the results of Peter Johnston's review, that there was a significant failing in the documentary in relation to the broadcaster's journalistic policies on truthfulness, which corresponds to regulation 2.2 of Ofcom's Broadcasting Code.
"We issued an apology for this and we comply with the regulator's ruling in its entirety. We will follow the directive as soon as the schedule and wording are determined."