Tagalog slang referring to any form of extortion committed by traffic officers (also known as kotong cops) in the Philippines. The word "kotong" was originally culled from a Tagalog word pertaining to the act of hitting someone on the back of the head with the knuckles of your closed fist.... usually inflicted by musclebound bullies that man the exit points of construction sites and other establishments, whenever you refuse to pay dilihensiya or cash to ensure your protection from the same people asking for it -- quite similar to school bullies.
The modern way of the kotong syndrome involves corrupt traffic officers. Their modus operandi is to flag down traffic violators (usually drivers of buses and huge trucks) and instead of writing them a ticket and confiscating their drivers license, they will ask you to step away from the vehicle so both of you could work something out -- which is basically an invitation for you to bribe them. Some techniques they use when accepting the bribe money are shaking hands, and sometimes handing the drivers license with the money slipped under it.