The public service broadcaster committed a "major breach" of broadcasting rules by failing to disclose that the narrator of a programme about the Gaza situation was the child of a Hamas representative, as determined by regulatory body Ofcom.
An investigation by Ofcom into the documentary titled Gaza: How to Survive a Warzone has found that the documentary was "substantially inaccurate".
The chief executive of the broadcaster had already issued an apology, saying there had been "a serious error in relation to accuracy".
The authority has ordered the BBC to transmit a peak-time declaration about its conclusions.
"As this represents a serious breach of our regulations, we are instructing the BBC to air a statement of our determinations against it on BBC2 at nine o'clock in the evening, with a timing to be determined," the regulator stated.
'Possibility to Undermine Credibility'
The regulator's statement declared: "Our probe found that the documentary's omission to reveal that the presenter's male guardian occupied a position in the Hamas-administered authority was materially misleading.
"It meant that the viewers did not have vital facts which may have been highly relevant to their evaluation of the narrator and the content he provided.
"Confidence is at the core of the relationship between a broadcaster and its public, especially for a public service broadcaster such as the British Broadcasting Corporation.
"This failing had the possibility to damage the very considerable levels of credibility that audiences would have placed in a BBC factual programme about the Gaza conflict."
The documentary was pulled from iPlayer in the month of February after the presenter's personal associations came to light, and in this past July an broadcaster's internal assessment determined it breached the broadcaster's journalistic standards on accuracy.
A corporation official stated: "The authority's determination is in accordance with the findings of the internal assessment, that there was a major oversight in the documentary in relation to the BBC's Editorial Guidelines on truthfulness, which aligns with clause 2.2 of the regulator's media standards.
"We have apologised for this and we comply with the authority's determination in full. We will adhere to the sanction as soon as the date and wording are finalised."