"He subsequently failed to add a two-shot penalty to his score when signing his card and, as a result, has now been disqualified."
The six-time European Tour winner, who had carded two rounds of 70, was told of his disqualification yesterday morning as he was preparing for his third round.
Tour organisers said Dyson was too upset to talk about the incident.
Paramor added: "It's a very sad thing to have to do but, unfortunately, his event is now over." It means Dyson, lying 66th on the Race to Dubai, will not earn any money this week.
He had not qualified for next week's WGC-HSBC Champions event in Shanghai and will have to qualify for the season-ending DP World Tour Championship in Dubai on the Turkish Airlines Open the following week.
Only the top-60 money earners on the European Tour's Race to Dubai standings gain automatic qualification for the $US8 million ($9.65m) tournament.
Last night, America's Luke Guthrie was eight under par, jointly leading the BMW Masters by a stroke with Spaniard Rafael Cabrera-Bello and, a stroke further back, fellow Spaniard Gonzalo Fernandez-Castano. Four other players were on 6-under or 5-under.