We discuss the problem of concurrent error detection (CED) with bounded latency in finite state machines (FSMs). The objective of this approach is to reduce the overhead of CED, albeit at the cost of introducing a small latency in the detection of errors. In order to ensure no loss of error detection capabilities as compared to CED without latency, an upper bound is imposed on the introduced latency. We examine the necessary conditions for performing CED with bounded latency, based on which we extend a parity-based method to permit bounded latency. We formulate the problem of minimizing the number of required parity bits as an Integer Program and we propose an algorithm based on Linear Program relaxation and Randomized Rounding to solve it. Experimental results indicate that allowing a small bounded latency reduces the hardware cost of the CED circuitry.