The BBC committed a "serious breach" of media regulations by not revealing that the presenter of a documentary about the Gaza conflict was the offspring of a Hamas administrator, as ruled by UK media regulator Ofcom.
An investigation by the media regulator into the documentary titled Gaza: How to Survive a Warzone has found that the film was "materially misleading".
The chief executive of the broadcaster had already issued an apology, saying there had been "a major oversight in relation to truthfulness".
The regulator has directed the BBC to air a prime-time statement about its conclusions.
"Given this constitutes a significant violation of our rules, we are instructing the BBC to transmit a announcement of our conclusions against it on BBC Two at 21:00, with a schedule to be confirmed," it said.
'Potential to Undermine Trust'
The watchdog's statement said: "Our probe concluded that the documentary's failure to disclose that the presenter's parent held a position in the Hamas-controlled administration was materially misleading.
"Consequently that the public did not have essential details which may have been very significant to their assessment of the presenter and the details he provided.
"Trust is at the heart of the relationship between a broadcaster and its audience, particularly for a public service broadcaster such as the public broadcaster.
"This error had the possibility to damage the very considerable degrees of trust that viewers would have invested in a documentary produced by the BBC about the Gaza conflict."
The film was pulled from the online platform in February after the boy's personal associations came to light, and in this past July an internal BBC review found it breached the broadcaster's editorial guidelines on truthfulness.
A BBC spokesperson stated: "The authority's determination is in line with the results of the corporation's inquiry, that there was a major oversight in the programme in relation to the broadcaster's journalistic policies on accuracy, which aligns with regulation 2.2 of the regulator's media standards.
"We have apologised for this and we agree with Ofcom's decision in complete. We will adhere to the penalty as soon as the timing and wording are confirmed."
